WallStSmart

Five Below Inc (FIVE)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 526% more annual revenue ($31.80B vs $5.08B). FIVE leads profitability with a 8.7% profit margin vs 6.0%. FIVE appears more attractively valued with a PEG of 0.98. FIVE earns a higher WallStSmart Score of 74/100 (B).

FIVE

Strong Buy

74

out of 100

Grade: B

Growth: 9.3Profit: 6.5Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.25

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

FIVEUndervalued (+23.0%)

Margin of Safety

+23.0%

Fair Value

$267.66

Current Price

$190.47

$77.20 discount

UndervaluedFair: $267.66Overvalued
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

FIVE3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
32.5%10/10

Revenue surging 32.5% year-over-year

EPS GrowthGrowth
195.6%10/10

Earnings expanding 195.6% YoY

PEG RatioValuation
0.988/10

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

FIVE1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : FIVE

The strongest argument for FIVE centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 32.5% demonstrates continued momentum. PEG of 0.98 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 : FIVE

The primary concerns for FIVE are 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

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.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FIVE scores higher overall (74/100 vs 58/100) and 32.5% revenue growth. MELI offers better value entry with a 61.8% 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.

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