MercadoLibre Inc. (MELI)vsWilliams-Sonoma Inc (WSM)
MELI
MercadoLibre Inc.
$1,599.52
-1.93%
CONSUMER CYCLICAL · Cap: $81.09B
WSM
Williams-Sonoma Inc
$175.29
-2.92%
CONSUMER CYCLICAL · Cap: $20.86B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 270% more annual revenue ($28.89B vs $7.81B). WSM leads profitability with a 13.9% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.76. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
WSM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-654.2%
Fair Value
$267.58
Current Price
$1599.52
$1331.94 premium
Margin of Safety
-255.0%
Fair Value
$60.04
Current Price
$175.29
$115.25 premium
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
Every $100 of equity generates 52 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 20.3%
Areas to Watch
Trading at 12.0x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 10.0x book value
Weak financial health signals
Revenue declined 4.3%
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 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : WSM
The strongest argument for WSM centers on Return on Equity, Altman Z-Score, Operating Margin.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 40.6x leaves little room for execution misses.
Bear Case : WSM
The primary concerns for WSM are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while WSM is a declining play — different risk/reward profiles.
WSM carries more volatility with a beta of 1.56 — 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 52/100) and 44.6% revenue growth. 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.
Williams-Sonoma Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.
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