MercadoLibre Inc. (MELI)vsRent the Runway Inc (RENT)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
RENT
Rent the Runway Inc
$4.66
+3.10%
CONSUMER CYCLICAL · Cap: $156.33M
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 8661% more annual revenue ($28.89B vs $329.80M). MELI leads profitability with a 6.9% profit margin vs 6.8%. RENT trades at a lower P/E of 2.5x. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
RENT
Avoid34
out of 100
Grade: F
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
+57.6%
Fair Value
$13.62
Current Price
$4.66
$8.96 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
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Revenue surging 20.0% year-over-year
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
0.0% earnings growth
Smaller company, higher risk/reward
6.8% margin — thin
ROE of -775.0% — below average capital efficiency
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 : RENT
The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 20.0% demonstrates continued momentum.
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 : RENT
The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while RENT is a growth 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
MELI scores higher overall (62/100 vs 34/100) and 44.6% revenue growth. RENT offers better value entry with a 57.6% margin of safety. Both earn "Buy" and "Avoid" 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.
Rent the Runway Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.
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