WallStSmart

Carter’s Inc (CRI)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 897% more annual revenue ($28.89B vs $2.90B). MELI leads profitability with a 6.9% profit margin vs 3.2%. MELI appears more attractively valued with a PEG of 0.83. MELI earns a higher WallStSmart Score of 62/100 (C+).

CRI

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 7.3Quality: 5.0

MELI

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIUndervalued (+49.9%)

Margin of Safety

+49.9%

Fair Value

$75.51

Current Price

$36.12

$39.39 discount

UndervaluedFair: $75.51Overvalued
MELIUndervalued (+59.5%)

Margin of Safety

+59.5%

Fair Value

$4981.85

Current Price

$1792.63

$3189.22 discount

UndervaluedFair: $4981.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
14.4x8/10

Attractively priced relative to earnings

MELI5 strengths · Avg: 9.0/10
Return on EquityProfitability
36.0%10/10

Every $100 of equity generates 36 in profit

Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

Market CapQuality
$90.88B9/10

Large-cap with strong market position

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

CRI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

EPS GrowthGrowth
4.0%4/10

4.0% earnings growth

Market CapQuality
$1.34B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
45.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

The strongest argument for CRI centers on Price/Book, P/E Ratio.

Bull Case : MELI

The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 44.6% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, EPS Growth, Market Cap. Thin 3.2% margins leave little buffer for downturns.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 45.5x leaves little room for execution misses.

Key Dynamics to Monitor

CRI profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.49 — expect wider price swings.

MELI is growing revenue faster at 44.6% — sustainability is the question.

MELI generates stronger free cash flow (4.8B), providing more financial flexibility.

Bottom Line

MELI scores higher overall (62/100 vs 53/100) and 44.6% revenue growth. CRI offers better value entry with a 49.9% 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.

Carter’s Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

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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