MercadoLibre Inc. (MELI)vsYum China Holdings Inc (YUMC)
MELI
MercadoLibre Inc.
$1,599.52
-1.93%
CONSUMER CYCLICAL · Cap: $81.09B
YUMC
Yum China Holdings Inc
$49.59
-0.76%
CONSUMER CYCLICAL · Cap: $17.42B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 145% more annual revenue ($28.89B vs $11.80B). YUMC leads profitability with a 7.9% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.76. YUMC earns a higher WallStSmart Score of 64/100 (C+).
MELI
Buy62
out of 100
Grade: C+
YUMC
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-654.2%
Fair Value
$267.58
Current Price
$1599.52
$1331.94 premium
Margin of Safety
+52.2%
Fair Value
$117.47
Current Price
$49.59
$67.88 discount
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
Earnings expanding 34.3% YoY
Areas to Watch
Trading at 12.0x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
7.9% margin — thin
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 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : YUMC
The strongest argument for YUMC centers on EPS Growth. PEG of 1.27 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 40.6x leaves little room for execution misses.
Bear Case : YUMC
The primary concerns for YUMC are Profit Margin, Free Cash Flow.
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 1.53 — 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
YUMC scores higher overall (64/100 vs 62/100). 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.
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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