MercadoLibre Inc. (MELI)vsShake Shack Inc (SHAK)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
SHAK
Shake Shack Inc
$100.61
+0.46%
CONSUMER CYCLICAL · Cap: $4.30B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 1899% more annual revenue ($28.89B vs $1.45B). MELI leads profitability with a 6.9% profit margin vs 3.2%. MELI appears more attractively valued with a PEG of 0.83. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
SHAK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$4981.85
Current Price
$1792.63
$3189.22 discount
Margin of Safety
+35.5%
Fair Value
$150.43
Current Price
$100.61
$49.82 discount
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
Revenue surging 21.9% year-over-year
Earnings expanding 28.7% YoY
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 0.83 suggests the stock is reasonably priced for its growth.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 45.5x leaves little room for execution misses.
Bear Case : SHAK
The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 92.3x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.75 — 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 50/100) and 44.6% revenue growth. SHAK offers better value entry with a 35.5% margin of safety. Both earn "Buy" and "Hold" 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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