Lithia Motors Inc (LAD)vsMercadoLibre Inc. (MELI)
LAD
Lithia Motors Inc
$276.58
-1.18%
CONSUMER CYCLICAL · Cap: $6.54B
MELI
MercadoLibre Inc.
$1,860.98
+0.37%
CONSUMER CYCLICAL · Cap: $94.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 30% more annual revenue ($37.63B vs $28.89B). MELI leads profitability with a 6.9% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.54. MELI earns a higher WallStSmart Score of 62/100 (C+).
LAD
Buy55
out of 100
Grade: C
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.4%
Fair Value
$212.98
Current Price
$276.58
$63.60 premium
Margin of Safety
+59.6%
Fair Value
$4995.04
Current Price
$1860.98
$3134.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
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
0.3% revenue growth
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Trading at 14.0x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.54 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 0.87 suggests the stock is reasonably priced for its growth.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.2x leaves little room for execution misses.
Key Dynamics to Monitor
LAD profiles as a value 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
MELI scores higher overall (62/100 vs 55/100) and 44.6% revenue growth. Both earn "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.
Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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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