MercadoLibre Inc. (MELI)vsToll Brothers Inc (TOL)
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
TOL
Toll Brothers Inc
$137.42
+1.09%
CONSUMER CYCLICAL · Cap: $13.75B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 188% more annual revenue ($31.80B vs $11.05B). TOL leads profitability with a 11.7% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.07. TOL earns a higher WallStSmart Score of 61/100 (C+).
MELI
Buy58
out of 100
Grade: C
TOL
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 discount
Margin of Safety
-53.9%
Fair Value
$95.60
Current Price
$137.42
$41.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Weak financial health signals
Revenue declined 7.6%
Earnings declined 22.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : MELI
The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.0% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.
Bull Case : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. PEG of 1.09 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 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Bear Case : TOL
The primary concerns for TOL are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while TOL is a declining 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.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TOL scores higher overall (61/100 vs 58/100). MELI offers better value entry with a 61.8% margin of safety. 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.
Toll Brothers Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.
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