WallStSmart

CarGurus (CARG)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 3289% more annual revenue ($31.80B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 6.0%. CARG appears more attractively valued with a PEG of 0.83. CARG earns a higher WallStSmart Score of 65/100 (C+).

CARG

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 9.0Value: 8.0Quality: 7.0
Piotroski: 5/9Altman Z: 4.31

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CARGUndervalued (+22.6%)

Margin of Safety

+22.6%

Fair Value

$35.55

Current Price

$27.42

$8.13 discount

UndervaluedFair: $35.55Overvalued
MELIUndervalued (+61.8%)

Margin of Safety

+61.8%

Fair Value

$5279.65

Current Price

$1607.80

$3671.85 discount

UndervaluedFair: $5279.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CARG5 strengths · Avg: 8.8/10
Return on EquityProfitability
62.9%10/10

Every $100 of equity generates 63 in profit

Altman Z-ScoreHealth
4.3110/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.838/10

Growing faster than its price suggests

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

MELI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$84.81B9/10

Large-cap with strong market position

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

Areas to Watch

CARG2 concerns · Avg: 3.0/10
Price/BookValuation
10.4x4/10

Trading at 10.4x book value

EPS GrowthGrowth
-8.4%2/10

Earnings declined 8.4%

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CARG

The strongest argument for CARG centers on Return on Equity, Altman Z-Score, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : MELI

The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.0% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.

Bear Case : CARG

The primary concerns for CARG are Price/Book, EPS Growth.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

CARG profiles as a mature stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.41 — expect wider price swings.

MELI is growing revenue faster at 49.0% — sustainability is the question.

MELI generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

CARG scores higher overall (65/100 vs 58/100), backed by strong 15.9% margins and 14.8% revenue growth. MELI offers better value entry with a 61.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CarGurus

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

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