HD vs MELI: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and MercadoLibre, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,632.52
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MELI has more upside to fair value
(+45.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
MELI |
| Current Price |
$302.44 |
$1,632.52 |
| Fair Value Estimate |
$369.00 |
$2,367.15 |
| Upside to Fair Value |
+22.0%
|
+45.0%
|
| Market Cap |
$301.2B |
$82.8B |
| Forward P/E |
20.5x
|
43.1x
|
| EV / EBITDA |
16.5x
|
22.5x
|
| Price / Sales |
2.0x
|
2.7x
|
| Price / FCF |
26.6x
|
7.2x
|
| Revenue Growth YoY |
+4.8%
|
+30.0%
|
| Gross Margin |
33.3%
|
45.5%
|
| Operating Margin |
12.7%
|
9.9%
|
| Return on Equity |
110.5%
|
29.6%
|
| Dividend Yield |
2.72% |
0% |
| FCF Yield |
3.75%
|
13.89%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
MercadoLibre, Inc. operates a leading e-commerce and fintech platform in Latin America, combining a dominant commerce marketplace with a rapidly growing fintech segment. The company benefits from a durable competitive moat driven by network effects, strong brand recognition, and a comprehensive logistics infrastructure. Despite a recent earnings growth decline of 15.6% in the most recent quarter,…
Accumulation Zones
| Metric |
HD |
MELI |
| Zone Low |
$276.75 |
$1,775.36 |
| Zone High |
$313.65 |
$2,012.08 |
| In Buy Zone? |
Yes
|
Yes
|