WallStSmart

Carvana Co (CVNA)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 41% more annual revenue ($31.80B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 6.0%. CVNA trades at a lower P/E of 37.9x. MELI earns a higher WallStSmart Score of 58/100 (C).

CVNA

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 3.7Quality: 8.5
Piotroski: 5/9Altman Z: 2.18

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

CVNASignificantly Overvalued (-66.1%)

Margin of Safety

-66.1%

Fair Value

$40.04

Current Price

$66.22

$26.18 premium

UndervaluedFair: $40.04Overvalued
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

CVNA4 strengths · Avg: 9.5/10
Return on EquityProfitability
42.9%10/10

Every $100 of equity generates 43 in profit

Revenue GrowthGrowth
52.0%10/10

Revenue surging 52.0% year-over-year

Market CapQuality
$71.95B9/10

Large-cap with strong market position

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

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

CVNA3 concerns · Avg: 3.7/10
P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

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 : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% 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 : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

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

CVNA carries more volatility with a beta of 3.55 — expect wider price swings.

CVNA is growing revenue faster at 52.0% — sustainability is the question.

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

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MELI scores higher overall (58/100 vs 56/100) and 49.0% revenue growth. 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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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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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