WallStSmart

D-MARKET Electronic Services & Trading ADR (HEPS)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

D-MARKET Electronic Services & Trading ADR generates 117% more annual revenue ($62.56B vs $28.89B). MELI leads profitability with a 6.9% profit margin vs -4.7%. MELI earns a higher WallStSmart Score of 62/100 (C+).

HEPS

Avoid

34

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 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

Intrinsic value data unavailable for HEPS.

MELISignificantly Overvalued (-654.6%)

Margin of Safety

-654.6%

Fair Value

$267.44

Current Price

$1639.47

$1372.03 premium

UndervaluedFair: $267.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HEPS2 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
62.7%10/10

Revenue surging 62.7% year-over-year

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
$81.72B9/10

Large-cap with strong market position

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

HEPS4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$756.32M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-129.8%2/10

ROE of -129.8% — below average capital efficiency

Profit MarginProfitability
-4.7%1/10

Currently unprofitable

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
12.3x4/10

Trading at 12.3x 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
41.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : HEPS

The strongest argument for HEPS centers on Price/Book, Revenue Growth. Revenue growth of 62.7% 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 0.76 suggests the stock is reasonably priced for its growth.

Bear Case : HEPS

The primary concerns for HEPS are EPS Growth, Market Cap, Return on Equity.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 41.0x leaves little room for execution misses.

Key Dynamics to Monitor

HEPS carries more volatility with a beta of 2.31 — expect wider price swings.

HEPS is growing revenue faster at 62.7% — sustainability is the question.

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

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MELI scores higher overall (62/100 vs 34/100) and 44.6% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

D-MARKET Electronic Services & Trading ADR

CONSUMER CYCLICAL · INTERNET RETAIL · USA

D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi operates an e-commerce platform. The company is headquartered in Istanbul, Turkey.

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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