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 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,767.42
+41.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
MELI has more upside to fair value
(+41.4%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
MELI |
| Current Price |
$337.34 |
$1,767.42 |
| Fair Value Estimate |
$378.00 |
$2,500.00 |
| Upside to Fair Value |
+12.1%
|
+41.4%
|
| Market Cap |
$336.0B |
$89.6B |
| Forward P/E |
23.0x
|
35.0x
|
| EV / EBITDA |
18.1x
|
18.5x
|
| Price / Sales |
2.3x
|
3.1x
|
| Price / FCF |
29.7x
|
8.9x
|
| Revenue Growth YoY |
+3.2%
|
+39.1%
|
| Gross Margin |
33.3%
|
44.5%
|
| Operating Margin |
12.7%
|
11.1%
|
| Return on Equity |
110.5%
|
33.7%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
12.1%
|
| 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 a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
MercadoLibre is the dominant e-commerce and fintech ecosystem across Latin America, operating the largest marketplace and digital payments platform in a region with 670M+ people where e-commerce penetration is still under 15%. Revenue grew 39% to $28.9B in FY2025 with $10.8B in free cash flow — a 12% FCF yield at current prices. The company is trading at its 5-year P/S minimum (3.1x) and P/FCF mi…
Accumulation Zones
| Metric |
HD |
MELI |
| Zone Low |
$285.00 |
$1,875.00 |
| Zone High |
$320.00 |
$2,125.00 |
| In Buy Zone? |
No
|
Yes
|