MercadoLibre Inc. (MELI)vsNetflix Inc (NFLX)
MELI
MercadoLibre Inc.
$1,632.52
-12.70%
CONSUMER CYCLICAL · Cap: $94.80B
NFLX
Netflix Inc
$87.49
-0.86%
COMMUNICATION SERVICES · Cap: $371.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 62% more annual revenue ($46.89B vs $28.89B). NFLX leads profitability with a 28.5% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 1.14. NFLX earns a higher WallStSmart Score of 77/100 (B+).
MELI
Buy60
out of 100
Grade: C+
NFLX
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.3%
Fair Value
$4955.41
Current Price
$1632.52
$3322.89 discount
Margin of Safety
-56.1%
Fair Value
$56.53
Current Price
$87.49
$30.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Generating 4.8B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 49 in profit
Strong operational efficiency at 32.3%
Earnings expanding 86.4% YoY
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Trading at 12.3x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
Trading at 13.9x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 1.14 suggests the stock is reasonably priced for its growth.
Bull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% demonstrates continued momentum.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.4x leaves little room for execution misses.
Bear Case : NFLX
The primary concerns for NFLX are P/E Ratio, Price/Book.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while NFLX is a growth play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.55 — expect wider price swings.
MELI is growing revenue faster at 44.6% — sustainability is the question.
NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (77/100 vs 60/100), backed by strong 28.5% margins and 16.2% revenue growth. MELI offers better value entry with a 59.3% 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.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
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