MercadoLibre Inc. (MELI)vsRH (RH)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
RH
RH
$131.97
-0.74%
CONSUMER CYCLICAL · Cap: $2.49B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 740% more annual revenue ($28.89B vs $3.44B). MELI leads profitability with a 6.9% profit margin vs 3.6%. RH appears more attractively valued with a PEG of 0.69. RH earns a higher WallStSmart Score of 66/100 (B-).
MELI
Buy62
out of 100
Grade: C+
RH
Strong Buy66
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
+20.3%
Fair Value
$250.77
Current Price
$131.97
$118.80 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 112.5% YoY
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
3.7% revenue growth
3.6% margin — thin
Trading at 41.0x book value
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 : RH
The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.69 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 : RH
The primary concerns for RH are Revenue Growth, Profit Margin, Price/Book. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while RH is a value play — different risk/reward profiles.
RH carries more volatility with a beta of 2.10 — 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
RH scores higher overall (66/100 vs 62/100). 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.
RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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