WallStSmart

Best Buy Co. Inc (BBY)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 32% more annual revenue ($41.86B vs $31.80B). MELI leads profitability with a 6.0% profit margin vs 2.7%. MELI appears more attractively valued with a PEG of 1.07. BBY earns a higher WallStSmart Score of 62/100 (C+).

BBY

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 3.64

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

BBYSignificantly Overvalued (-67.0%)

Margin of Safety

-67.0%

Fair Value

$40.17

Current Price

$71.54

$31.37 premium

UndervaluedFair: $40.17Overvalued
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

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
37.9%8/10

Earnings expanding 37.9% YoY

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

BBY4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.343/10

Elevated debt levels

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 : BBY

The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.

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 : BBY

The primary concerns for BBY are Revenue Growth, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

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

BBY 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 49.0% — sustainability is the question.

MELI generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

BBY scores higher overall (62/100 vs 58/100). MELI offers better value entry with a 61.8% 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.

Best Buy Co. Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

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

Want to dig deeper into these stocks?