Jack in the Box Inc. (JACK)vsMercadoLibre Inc. (MELI)
JACK
Jack in the Box Inc.
$16.34
-0.79%
CONSUMER CYCLICAL · Cap: $277.52M
MELI
MercadoLibre Inc.
$1,863.31
+0.04%
CONSUMER CYCLICAL · Cap: $91.21B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 2120% more annual revenue ($31.80B vs $1.43B). MELI leads profitability with a 6.0% profit margin vs 2.5%. JACK appears more attractively valued with a PEG of 0.37. MELI earns a higher WallStSmart Score of 58/100 (C).
JACK
Hold42
out of 100
Grade: D
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.2%
Fair Value
$39.07
Current Price
$16.34
$22.73 discount
Margin of Safety
+61.3%
Fair Value
$5220.85
Current Price
$1863.31
$3357.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Conservative balance sheet, low leverage
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
2.5% margin — thin
Revenue declined 4.3%
Trading at 13.0x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : JACK
The strongest argument for JACK centers on PEG Ratio, Debt/Equity. PEG of 0.37 suggests the stock is reasonably priced for its growth.
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 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : JACK
The primary concerns for JACK are Market Cap, Return on Equity, Profit Margin. Thin 2.5% margins leave little buffer for downturns.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 48.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
JACK profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
JACK carries more volatility with a beta of 1.40 — expect wider price swings.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (58/100 vs 42/100) and 49.0% revenue growth. JACK offers better value entry with a 47.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Jack in the Box Inc.
CONSUMER CYCLICAL · RESTAURANTS · USA
Jack in the Box Inc. operates and franchises Jack in the Box quick service restaurants. The company is headquartered in San Diego, California.
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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