MercadoLibre Inc. (MELI)vsYum China Holdings Inc (YUMC)
MELI
MercadoLibre Inc.
$1,897.37
-0.47%
CONSUMER CYCLICAL · Cap: $96.19B
YUMC
Yum China Holdings Inc
$42.32
+0.07%
CONSUMER CYCLICAL · Cap: $14.74B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 183% more annual revenue ($35.18B vs $12.44B). YUMC leads profitability with a 7.8% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. YUMC earns a higher WallStSmart Score of 71/100 (B).
MELI
Buy60
out of 100
Grade: C+
YUMC
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.8%
Fair Value
$5728.38
Current Price
$1897.37
$3831.01 discount
Intrinsic value data unavailable for YUMC.
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
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 21.4% YoY
Areas to Watch
Trading at 12.3x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
7.8% margin — thin
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 : YUMC
The strongest argument for YUMC centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.97 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 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : YUMC
The primary concerns for YUMC are Profit Margin.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while YUMC is a value 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.
MELI generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
YUMC scores higher overall (71/100 vs 60/100) and 12.6% 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.
Yum China Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
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