MercadoLibre Inc. (MELI)vsPenske Automotive Group Inc (PAG)
MELI
MercadoLibre Inc.
$1,860.98
+0.37%
CONSUMER CYCLICAL · Cap: $94.35B
PAG
Penske Automotive Group Inc
$159.47
-0.77%
CONSUMER CYCLICAL · Cap: $10.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 10% more annual revenue ($31.81B vs $28.89B). MELI leads profitability with a 6.9% profit margin vs 2.9%. MELI appears more attractively valued with a PEG of 0.87. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
PAG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.6%
Fair Value
$4995.04
Current Price
$1860.98
$3134.06 discount
Margin of Safety
-80.3%
Fair Value
$96.08
Current Price
$159.47
$63.39 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
Growing faster than its price suggests
Generating 4.8B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 14.0x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.4%
Elevated debt levels
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 0.87 suggests the stock is reasonably priced for its growth.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
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.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while PAG is a value 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 53/100) 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.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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