WallStSmart

Etsy, Inc. (ETSY)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 996% more annual revenue ($31.80B vs $2.90B). ETSY leads profitability with a 9.8% profit margin vs 6.0%. ETSY appears more attractively valued with a PEG of 0.68. MELI earns a higher WallStSmart Score of 58/100 (C).

ETSY

Hold

45

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 8.0Quality: 5.5
Piotroski: 2/9Altman Z: 0.39

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ETSYUndervalued (+64.7%)

Margin of Safety

+64.7%

Fair Value

$134.25

Current Price

$66.86

$67.39 discount

UndervaluedFair: $134.25Overvalued
MELIUndervalued (+61.8%)

Margin of Safety

+61.8%

Fair Value

$5279.65

Current Price

$1607.80

$3671.85 discount

UndervaluedFair: $5279.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETSY2 strengths · Avg: 9.0/10
Debt/EquityHealth
-0.6510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.688/10

Growing faster than its price suggests

MELI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$84.81B9/10

Large-cap with strong market position

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

Areas to Watch

ETSY4 concerns · Avg: 3.3/10
P/E RatioValuation
26.6x4/10

Moderate valuation

Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-1224.0%2/10

ROE of -1224.0% — below average capital efficiency

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ETSY

The strongest argument for ETSY centers on Debt/Equity, PEG Ratio. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : ETSY

The primary concerns for ETSY are P/E Ratio, Revenue Growth, Piotroski F-Score.

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.

Key Dynamics to Monitor

ETSY profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.

ETSY carries more volatility with a beta of 1.86 — 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

MELI scores higher overall (58/100 vs 45/100) and 49.0% revenue growth. ETSY offers better value entry with a 64.7% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Etsy, Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Etsy, Inc. is an American e-commerce company focused on handmade or vintage items and craft supplies. These items fall under a wide range of categories, including jewelry, bags, clothing, home decor and furniture, toys, art, as well as craft supplies and tools.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

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