WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Trip.com Group Ltd ADR generates 84% more annual revenue ($64.79B vs $35.18B). TCOM leads profitability with a 48.6% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. TCOM earns a higher WallStSmart Score of 69/100 (B-).

MELI

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35

TCOM

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+64.8%)

Margin of Safety

+64.8%

Fair Value

$5728.38

Current Price

$1897.37

$3831.01 discount

UndervaluedFair: $5728.38Overvalued
TCOMUndervalued (+89.3%)

Margin of Safety

+89.3%

Fair Value

$366.27

Current Price

$39.02

$327.25 discount

UndervaluedFair: $366.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI5 strengths · Avg: 8.8/10
Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

Market CapQuality
$96.19B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

TCOM6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
48.6%10/10

Keeps 49 of every $100 in revenue as profit

Free Cash FlowQuality
$13.58B10/10

Generating 13.6B in free cash flow

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Operating MarginProfitability
24.3%8/10

Strong operational efficiency at 24.3%

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TCOM2 concerns · Avg: 3.0/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

EPS GrowthGrowth
-39.7%2/10

Earnings declined 39.7%

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 49.8% demonstrates continued momentum. PEG of 0.92 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 48.6% and operating margin at 24.3%. 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 : TCOM

The primary concerns for TCOM are PEG Ratio, EPS Growth.

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 1.31 — expect wider price swings.

MELI is growing revenue faster at 49.8% — sustainability is the question.

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

Bottom Line

TCOM scores higher overall (69/100 vs 60/100), backed by strong 48.6% margins and 17.2% revenue growth. MELI offers better value entry with a 64.8% margin of safety. Both earn "Strong 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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