Huazhu Group Ltd (HTHT)vsMercadoLibre Inc. (MELI)
HTHT
Huazhu Group Ltd
$51.86
+1.85%
CONSUMER CYCLICAL · Cap: $15.95B
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 14% more annual revenue ($28.89B vs $25.31B). HTHT leads profitability with a 20.1% profit margin vs 6.9%. HTHT appears more attractively valued with a PEG of 0.27. HTHT earns a higher WallStSmart Score of 80/100 (B+).
HTHT
Strong Buy80
out of 100
Grade: B+
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.1%
Fair Value
$113.56
Current Price
$51.86
$61.70 discount
Margin of Safety
+59.5%
Fair Value
$4981.85
Current Price
$1792.63
$3189.22 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Earnings expanding 2217.0% YoY
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 29.1%
Generating 3.2B in free cash flow
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
Trading at 8.5x book value
Distress zone — elevated risk
Elevated debt levels
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : HTHT
The strongest argument for HTHT centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 20.1% and operating margin at 29.1%. PEG of 0.27 suggests the stock is reasonably priced for its growth.
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 : HTHT
The primary concerns for HTHT are Price/Book, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.13 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
HTHT profiles as a mature 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
HTHT scores higher overall (80/100 vs 62/100), backed by strong 20.1% margins. MELI offers better value entry with a 59.5% 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.
Huazhu Group Ltd
CONSUMER CYCLICAL · LODGING · China
Huazhu Group Limited, develops leased and owned, managed and franchised hotels mainly in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
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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