WallStSmart

Carvana Co (CVNA)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 42% more annual revenue ($28.89B vs $20.32B). CVNA leads profitability with a 6.9% profit margin vs 6.9%. MELI trades at a lower P/E of 47.2x. MELI earns a higher WallStSmart Score of 62/100 (C+).

CVNA

Buy

58

out of 100

Grade: C

Growth: 9.3Profit: 7.0Value: 3.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.18

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

CVNASignificantly Overvalued (-63.3%)

Margin of Safety

-63.3%

Fair Value

$222.98

Current Price

$416.79

$193.81 premium

UndervaluedFair: $222.98Overvalued
MELIUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$4995.04

Current Price

$1860.98

$3134.06 discount

UndervaluedFair: $4995.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA5 strengths · Avg: 9.6/10
Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Revenue GrowthGrowth
58.0%10/10

Revenue surging 58.0% year-over-year

EPS GrowthGrowth
947.0%10/10

Earnings expanding 947.0% YoY

Market CapQuality
$91.99B9/10

Large-cap with strong market position

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

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
$94.35B9/10

Large-cap with strong market position

PEG RatioValuation
0.878/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

CVNA3 concerns · Avg: 3.0/10
Price/BookValuation
17.2x4/10

Trading at 17.2x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

P/E RatioValuation
49.3x2/10

Premium valuation, high expectations priced in

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
14.0x4/10

Trading at 14.0x 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
47.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 58.0% demonstrates continued momentum.

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 0.87 suggests the stock is reasonably priced for its growth.

Bear Case : CVNA

The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 49.3x leaves little room for execution misses.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.2x leaves little room for execution misses.

Key Dynamics to Monitor

CVNA carries more volatility with a beta of 3.61 — expect wider price swings.

CVNA is growing revenue faster at 58.0% — sustainability is the question.

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

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

Bottom Line

MELI scores higher overall (62/100 vs 58/100) and 44.6% 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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