Five Below Inc (FIVE)vsMercadoLibre Inc. (MELI)
FIVE
Five Below Inc
$228.14
-1.89%
CONSUMER CYCLICAL · Cap: $12.60B
MELI
MercadoLibre Inc.
$1,767.02
-1.39%
CONSUMER CYCLICAL · Cap: $90.88B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 506% more annual revenue ($28.89B vs $4.76B). FIVE leads profitability with a 7.5% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.83. FIVE earns a higher WallStSmart Score of 65/100 (B-).
FIVE
Strong Buy65
out of 100
Grade: B-
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.9%
Fair Value
$270.74
Current Price
$228.14
$42.60 discount
Margin of Safety
+59.5%
Fair Value
$4981.85
Current Price
$1767.02
$3214.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 24.3% year-over-year
Earnings expanding 26.3% YoY
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
Areas to Watch
Premium valuation, high expectations priced in
7.5% margin — thin
Trading at 13.3x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : FIVE
The strongest argument for FIVE centers on Revenue Growth, EPS Growth. Revenue growth of 24.3% demonstrates continued momentum. PEG of 1.19 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 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : FIVE
The primary concerns for FIVE are P/E Ratio, Profit Margin.
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.
Key Dynamics to Monitor
FIVE profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.49 — 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
FIVE scores higher overall (65/100 vs 62/100) and 24.3% revenue growth. 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.
Five Below Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Five Below, Inc. is a specialty value retailer in the United States. The company is headquartered in Philadelphia, Pennsylvania.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Compare with Other SPECIALTY RETAIL Stocks
Want to dig deeper into these stocks?