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 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,767.42
+41.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
MELI |
| Current Price |
$128.98 |
$1,767.42 |
| Fair Value Estimate |
$525.85 |
$2,500.00 |
| Upside to Fair Value |
+307.7%
|
+41.4%
|
| Market Cap |
$15.1B |
$89.6B |
| Forward P/E |
9.7x
|
35.0x
|
| EV / EBITDA |
5.6x
|
18.5x
|
| Price / Sales |
1.4x
|
3.1x
|
| Price / FCF |
16.4x
|
8.9x
|
| Revenue Growth YoY |
+0.8%
|
+39.1%
|
| Gross Margin |
56.6%
|
44.5%
|
| Operating Margin |
19.8%
|
11.1%
|
| Return on Equity |
34.8%
|
33.7%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
12.1%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
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 |
LULU |
MELI |
| Zone Low |
$394.39 |
$1,875.00 |
| Zone High |
$446.97 |
$2,125.00 |
| In Buy Zone? |
Yes
|
Yes
|