Bath & Body Works Inc. (BBWI)vsMercadoLibre Inc. (MELI)
BBWI
Bath & Body Works Inc.
$19.20
+4.35%
CONSUMER CYCLICAL · Cap: $3.87B
MELI
MercadoLibre Inc.
$1,841.14
+1.31%
CONSUMER CYCLICAL · Cap: $91.94B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 296% more annual revenue ($28.89B vs $7.29B). BBWI leads profitability with a 8.9% profit margin vs 6.9%. BBWI appears more attractively valued with a PEG of 0.84. MELI earns a higher WallStSmart Score of 60/100 (C+).
BBWI
Buy51
out of 100
Grade: C-
MELI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$33.33
Current Price
$19.20
$14.13 discount
Margin of Safety
+59.3%
Fair Value
$4955.41
Current Price
$1841.14
$3114.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Growing faster than its price suggests
Strong operational efficiency at 22.5%
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Generating 4.8B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Revenue declined 2.3%
Earnings declined 4.7%
Trading at 13.8x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BBWI
The strongest argument for BBWI centers on P/E Ratio, PEG Ratio, Operating Margin. PEG of 0.84 suggests the stock is reasonably priced for its growth.
Bull 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 1.14 suggests the stock is reasonably priced for its growth.
Bear Case : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Revenue Growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.0x leaves little room for execution misses.
Key Dynamics to Monitor
BBWI profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.41 — 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
MELI scores higher overall (60/100 vs 51/100) and 44.6% revenue growth. BBWI offers better value entry with a 32.8% margin of safety. 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.
Bath & Body Works Inc.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Bath & Body Works Inc. (BBWI) stands as a premier specialty retailer renowned for its diverse portfolio of premium personal care products, including body care, skincare, fragrances, and home fragrances. The company leverages a strong omnichannel strategy that combines an extensive physical retail presence with a robust online platform, driving customer loyalty and engagement. Continued innovation and adaptive marketing strategies enable Bath & Body Works to respond effectively to evolving consumer preferences within the dynamic beauty and personal care landscape. As a subsidiary of L Brands, Inc., Bath & Body Works benefits from operational synergies while remaining committed to sustainability and community initiatives, positioning itself for sustained growth and industry leadership.
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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