MercadoLibre Inc. (MELI)vsSonic Automotive Inc (SAH)
MELI
MercadoLibre Inc.
$1,826.58
+0.34%
CONSUMER CYCLICAL · Cap: $96.19B
SAH
Sonic Automotive Inc
$65.34
-0.88%
CONSUMER CYCLICAL · Cap: $2.41B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 127% more annual revenue ($35.18B vs $15.47B). MELI leads profitability with a 5.3% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.73. MELI earns a higher WallStSmart Score of 60/100 (C+).
MELI
Buy60
out of 100
Grade: C+
SAH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.7%
Fair Value
$5712.73
Current Price
$1826.58
$3886.15 discount
Margin of Safety
-23.4%
Fair Value
$49.30
Current Price
$65.34
$16.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.8% year-over-year
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Generating 3.4B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 11.8x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on Altman Z-Score, PEG Ratio, P/E Ratio. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.56 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while SAH is a value 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 (3.4B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (60/100 vs 59/100) and 49.8% 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.
Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
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