KB Home (KBH)vsMercadoLibre Inc. (MELI)
KBH
KB Home
$52.30
-3.95%
CONSUMER CYCLICAL · Cap: $3.27B
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 388% more annual revenue ($28.89B vs $5.92B). MELI leads profitability with a 6.9% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 0.83. MELI earns a higher WallStSmart Score of 62/100 (C+).
KBH
Hold48
out of 100
Grade: D+
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$130.54
Current Price
$52.30
$78.24 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
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
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
6.0% margin — thin
Operating margin of 3.0%
Weak financial health signals
Expensive relative to growth rate
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 : KBH
The strongest argument for KBH centers on P/E Ratio, Price/Book, Altman Z-Score.
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 : KBH
The primary concerns for KBH are Profit Margin, Operating Margin, Piotroski F-Score.
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
KBH profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
KBH carries more volatility with a beta of 1.50 — 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
MELI scores higher overall (62/100 vs 48/100) and 44.6% revenue growth. KBH offers better value entry with a 51.0% 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.
KB Home
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
KB Home is a home construction company in the United States. The company is headquartered in Los Angeles, 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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