MercadoLibre Inc. (MELI)vsToll Brothers Inc (TOL)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
TOL
Toll Brothers Inc
$142.14
+1.84%
CONSUMER CYCLICAL · Cap: $13.22B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 157% more annual revenue ($28.89B vs $11.25B). TOL leads profitability with a 12.3% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.83. TOL earns a higher WallStSmart Score of 73/100 (B).
MELI
Buy62
out of 100
Grade: C+
TOL
Strong Buy73
out of 100
Grade: B
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
-34.4%
Fair Value
$120.11
Current Price
$142.14
$22.03 premium
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
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
15.4% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Weak financial health signals
Negative free cash flow — burning cash
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 : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. Revenue growth of 15.4% demonstrates continued momentum. PEG of 1.04 suggests the stock is reasonably priced for its growth.
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 : TOL
The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while TOL is a growth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.49 — 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
TOL scores higher overall (73/100 vs 62/100) and 15.4% revenue growth. MELI offers better value entry with a 59.5% 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.
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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