MercadoLibre Inc. (MELI)vsRoss Stores Inc (ROST)
MELI
MercadoLibre Inc.
$1,897.37
-0.47%
CONSUMER CYCLICAL · Cap: $96.19B
ROST
Ross Stores Inc
$230.74
+2.33%
CONSUMER CYCLICAL · Cap: $74.02B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 44% more annual revenue ($35.18B vs $24.51B). ROST leads profitability with a 10.8% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. ROST earns a higher WallStSmart Score of 64/100 (C+).
MELI
Buy60
out of 100
Grade: C+
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.8%
Fair Value
$5728.38
Current Price
$1897.37
$3831.01 discount
Margin of Safety
-4.8%
Fair Value
$183.73
Current Price
$230.74
$47.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.8% year-over-year
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Generating 3.4B in free cash flow
Every $100 of equity generates 39 in profit
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Trading at 12.3x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 10.9x 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 49.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while ROST is a value play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.31 — expect wider price swings.
MELI is growing revenue faster at 49.8% — sustainability is the question.
MELI generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
ROST scores higher overall (64/100 vs 60/100) and 13.3% revenue growth. MELI offers better value entry with a 64.8% 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.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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