LULU vs MELI: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and MercadoLibre, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,635.15
+45.0% upside to fair value
Grade B
High Quality
Valuation & Fundamentals
| Metric |
LULU |
MELI |
| Current Price |
$116.33 |
$1,635.15 |
| Fair Value Estimate |
$168.68 |
$2,370.97 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$13.2B |
$82.9B |
| Forward P/E |
—
|
43.2x
|
| EV / EBITDA |
5.3x
|
27.0x
|
| Price / Sales |
1.2x
|
2.6x
|
| Price / FCF |
10.3x
|
7.7x
|
| Revenue Growth YoY |
+4.3%
|
+49.0%
|
| Gross Margin |
55.7%
|
43.9%
|
| Operating Margin |
18.2%
|
9.6%
|
| Return on Equity |
31.3%
|
29.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
9.69%
|
12.92%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
MercadoLibre is a leading Latin American e-commerce and fintech platform with a durable competitive moat driven by its integrated logistics and financial services stack. The company commands approximately 30 to 35 percent market share in e-commerce and over 30 percent in online payments in key markets like Brazil. It is founder-influenced with a long-tenured management team and reinvests heavily …
Accumulation Zones
| Metric |
LULU |
MELI |
| Zone Low |
$126.51 |
$1,778.23 |
| Zone High |
$143.38 |
$2,015.32 |
| In Buy Zone? |
Yes
|
Yes
|