eBay Inc (EBAY)vsMercadoLibre Inc. (MELI)
EBAY
eBay Inc
$104.07
+0.57%
CONSUMER CYCLICAL · Cap: $46.21B
MELI
MercadoLibre Inc.
$1,850.05
+3.20%
CONSUMER CYCLICAL · Cap: $90.88B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 149% more annual revenue ($28.89B vs $11.60B). EBAY leads profitability with a 17.6% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.83. EBAY earns a higher WallStSmart Score of 66/100 (B-).
EBAY
Strong Buy66
out of 100
Grade: B-
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.7%
Fair Value
$98.31
Current Price
$104.07
$5.76 discount
Margin of Safety
+59.4%
Fair Value
$4968.55
Current Price
$1850.05
$3118.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.2%
19.5% revenue growth
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Generating 4.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
Elevated debt levels
Trading at 13.9x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : EBAY
The strongest argument for EBAY centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 17.6% and operating margin at 23.2%. Revenue growth of 19.5% 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 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : EBAY
The primary concerns for EBAY are PEG Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.60 is elevated, increasing financial risk.
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
EBAY profiles as a growth 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
EBAY scores higher overall (66/100 vs 62/100), backed by strong 17.6% margins and 19.5% revenue growth. MELI offers better value entry with a 59.4% margin of safety. Both earn "Strong 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.
eBay Inc
CONSUMER CYCLICAL · INTERNET RETAIL · USA
eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.
Visit Website →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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