MercadoLibre Inc. (MELI)vsZumiez Inc (ZUMZ)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
ZUMZ
Zumiez Inc
$24.57
+2.55%
CONSUMER CYCLICAL · Cap: $425.87M
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 3010% more annual revenue ($28.89B vs $929.06M). MELI leads profitability with a 6.9% profit margin vs 1.4%. MELI appears more attractively valued with a PEG of 0.83. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
ZUMZ
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$4981.85
Current Price
$1792.63
$3189.22 discount
Margin of Safety
+45.6%
Fair Value
$44.43
Current Price
$24.57
$19.86 discount
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
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 49.1% YoY
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
4.4% revenue growth
Smaller company, higher risk/reward
ROE of 4.1% — below average capital efficiency
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 0.83 suggests the stock is reasonably priced for its growth.
Bull Case : ZUMZ
The strongest argument for ZUMZ centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.96 suggests the stock is reasonably priced for its growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 45.5x leaves little room for execution misses.
Bear Case : ZUMZ
The primary concerns for ZUMZ are P/E Ratio, Revenue Growth, Market Cap. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while ZUMZ is a value play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.49 — 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 61/100) and 44.6% revenue growth. ZUMZ offers better value entry with a 45.6% 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.
Zumiez Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Zumiez Inc., is a specialty retailer of clothing, footwear, accessories and durable goods for young men and women. The company is headquartered in Lynnwood, Washington.
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