WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 303% more annual revenue ($31.80B vs $7.88B). WSM leads profitability with a 13.8% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.12. 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: 4.0
Piotroski: 2/9Altman Z: 1.35

WSM

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+61.6%)

Margin of Safety

+61.6%

Fair Value

$5249.55

Current Price

$1867.30

$3382.25 discount

UndervaluedFair: $5249.55Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$91.65B9/10

Large-cap with strong market position

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

WSM2 strengths · Avg: 10.0/10
Return on EquityProfitability
58.2%10/10

Every $100 of equity generates 58 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
13.0x4/10

Trading at 13.0x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WSM4 concerns · Avg: 4.0/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
12.4x4/10

Trading at 12.4x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull 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 : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score.

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 : WSM

The primary concerns for WSM are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

MELI profiles as a hypergrowth stock while WSM is a value 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 54/100) 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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