WallStSmart

CarMax Inc (KMX)vsMercadoLibre Inc. (MELI)

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Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 19% more annual revenue ($35.18B vs $29.46B). MELI leads profitability with a 5.3% profit margin vs 1.0%. KMX appears more attractively valued with a PEG of 0.68. KMX earns a higher WallStSmart Score of 65/100 (B-).

KMX

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 4.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.66

MELI

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KMX.

MELIUndervalued (+64.4%)

Margin of Safety

+64.4%

Fair Value

$5665.85

Current Price

$1676.79

$3989.06 discount

UndervaluedFair: $5665.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX4 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
81.6%10/10

Earnings expanding 81.6% YoY

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

MELI5 strengths · Avg: 8.8/10
Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

Market CapQuality
$82.36B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.22B8/10

Generating 3.2B in free cash flow

Areas to Watch

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
10.9x4/10

Trading at 10.9x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 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 49.8% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : KMX

The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% 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 44.2x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

KMX profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.31 — expect wider price swings.

MELI is growing revenue faster at 49.8% — sustainability is the question.

MELI generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

KMX scores higher overall (65/100 vs 60/100) and 17.7% revenue growth. MELI offers better value entry with a 64.4% 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.

CarMax Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.

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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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