WallStSmart

MercadoLibre Inc. (MELI)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 307% more annual revenue ($31.80B vs $7.81B). WSM leads profitability with a 13.9% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.01. MELI earns a higher WallStSmart Score of 58/100 (C).

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 5.0
Piotroski: 2/9Altman Z: 1.35

WSM

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 8.5Value: 5.0Quality: 6.0
Piotroski: 2/9Altman Z: 3.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+61.9%)

Margin of Safety

+61.9%

Fair Value

$5294.84

Current Price

$1664.42

$3630.42 discount

UndervaluedFair: $5294.84Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI4 strengths · Avg: 9.3/10
Return on EquityProfitability
31.3%10/10

Every $100 of equity generates 31 in profit

Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$79.19B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

WSM3 strengths · Avg: 9.3/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

Altman Z-ScoreHealth
3.2410/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
41.1x2/10

Premium valuation, high expectations priced in

WSM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-4.3%2/10

Revenue declined 4.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : MELI

The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 49.0% demonstrates continued momentum. PEG of 1.01 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 41.1x 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 1.49 — 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

MELI scores higher overall (58/100 vs 52/100) and 49.0% 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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