WallStSmart

MercadoLibre Inc. (MELI)vsTrip.com Group Ltd ADR (TCOM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Trip.com Group Ltd ADR generates 96% more annual revenue ($62.41B vs $31.80B). TCOM leads profitability with a 53.3% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.07. TCOM earns a higher WallStSmart Score of 81/100 (A-).

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35

TCOM

Exceptional Buy

81

out of 100

Grade: A-

Growth: 9.3Profit: 8.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 2.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+61.8%)

Margin of Safety

+61.8%

Fair Value

$5279.65

Current Price

$1607.80

$3671.85 discount

UndervaluedFair: $5279.65Overvalued
TCOMUndervalued (+87.0%)

Margin of Safety

+87.0%

Fair Value

$362.17

Current Price

$47.69

$314.48 discount

UndervaluedFair: $362.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$84.81B9/10

Large-cap with strong market position

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

TCOM6 strengths · Avg: 9.8/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.3%10/10

Keeps 53 of every $100 in revenue as profit

EPS GrowthGrowth
98.1%10/10

Earnings expanding 98.1% YoY

Free Cash FlowQuality
$13.58B10/10

Generating 13.6B in free cash flow

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TCOM1 concerns · Avg: 4.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : MELI

The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.0% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.

Bull Case : TCOM

The strongest argument for TCOM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.3% and operating margin at 16.5%. Revenue growth of 20.8% demonstrates continued momentum.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.

Bear Case : TCOM

The primary concerns for TCOM are PEG Ratio.

Key Dynamics to Monitor

MELI profiles as a hypergrowth stock while TCOM is a growth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.41 — expect wider price swings.

MELI is growing revenue faster at 49.0% — sustainability is the question.

TCOM generates stronger free cash flow (13.6B), providing more financial flexibility.

Bottom Line

TCOM scores higher overall (81/100 vs 58/100), backed by strong 53.3% margins and 20.8% revenue growth. MELI offers better value entry with a 61.8% margin of safety. Both earn "Exceptional 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.

Trip.com Group Ltd ADR

CONSUMER CYCLICAL · TRAVEL SERVICES · China

Trip.com Group Limited is a travel service provider for accommodation booking, transportation ticketing, destination and package tours, corporate travel management and other travel-related services in China and internationally. The company is headquartered in Shanghai, the People's Republic of China.

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