MercadoLibre Inc. (MELI)vsShake Shack Inc (SHAK)
MELI
MercadoLibre Inc.
$1,897.37
-0.47%
CONSUMER CYCLICAL · Cap: $96.19B
SHAK
Shake Shack Inc
$63.51
-0.23%
CONSUMER CYCLICAL · Cap: $2.70B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 2166% more annual revenue ($35.18B vs $1.55B). MELI leads profitability with a 5.3% profit margin vs 2.6%. MELI appears more attractively valued with a PEG of 0.92. MELI earns a higher WallStSmart Score of 60/100 (C+).
MELI
Buy60
out of 100
Grade: C+
SHAK
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.8%
Fair Value
$5728.38
Current Price
$1897.37
$3831.01 discount
Margin of Safety
+30.1%
Fair Value
$138.90
Current Price
$63.51
$75.40 discount
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
17.2% revenue growth
Areas to Watch
Trading at 12.3x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
ROE of 7.8% — below average capital efficiency
2.6% margin — thin
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 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 : SHAK
The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.
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 : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% 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 1.66 — 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 42/100) and 49.8% revenue growth. SHAK offers better value entry with a 30.1% 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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