MercadoLibre Inc. (MELI)vsRH (RH)
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
RH
RH
$146.63
-4.32%
CONSUMER CYCLICAL · Cap: $2.89B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 828% more annual revenue ($31.80B vs $3.43B). MELI leads profitability with a 6.0% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 0.79. RH earns a higher WallStSmart Score of 61/100 (C+).
MELI
Buy58
out of 100
Grade: C
RH
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 discount
Margin of Safety
+4.3%
Fair Value
$208.94
Current Price
$146.63
$62.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Earnings expanding 112.5% YoY
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Areas to Watch
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Moderate valuation
3.0% margin — thin
Operating margin of 0.3%
Trading at 45.5x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : RH
The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.
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.
Bear Case : RH
The primary concerns for RH are P/E Ratio, Profit Margin, Operating Margin. Debt-to-equity of 65.50 is elevated, increasing financial risk. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while RH is a value play — different risk/reward profiles.
RH carries more volatility with a beta of 1.90 — 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
RH scores higher overall (61/100 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.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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