MercadoLibre Inc. (MELI)vsUlta Beauty Inc (ULTA)
MELI
MercadoLibre Inc.
$1,867.30
+0.81%
CONSUMER CYCLICAL · Cap: $91.65B
ULTA
Ulta Beauty Inc
$473.33
+0.88%
CONSUMER CYCLICAL · Cap: $19.45B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 150% more annual revenue ($31.80B vs $12.71B). ULTA leads profitability with a 9.4% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.12. ULTA earns a higher WallStSmart Score of 63/100 (C+).
MELI
Buy58
out of 100
Grade: C
ULTA
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.6%
Fair Value
$5249.55
Current Price
$1867.30
$3382.25 discount
Margin of Safety
-23.3%
Fair Value
$554.10
Current Price
$473.33
$80.77 premium
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
Every $100 of equity generates 46 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
Trading at 13.0x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Weak financial health signals
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 1.12 suggests the stock is reasonably priced for its growth.
Bull Case : ULTA
The strongest argument for ULTA centers on Return on Equity, Altman Z-Score, P/E Ratio. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 47.9x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Piotroski F-Score.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while ULTA is a value play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.34 — 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
ULTA scores higher overall (63/100 vs 58/100) and 11.1% revenue growth. MELI offers better value entry with a 61.6% 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.
Ulta Beauty Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.
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