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 2026-06-20.
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,635.15
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
MELI |
| Current Price |
$111.77 |
$1,635.15 |
| Fair Value Estimate |
$162.07 |
$2,370.97 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$12.7B |
$82.9B |
| Forward P/E |
9.1x
|
43.2x
|
| EV / EBITDA |
5.1x
|
27.0x
|
| Price / Sales |
1.1x
|
2.6x
|
| Price / FCF |
9.9x
|
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 |
10.08%
|
12.92%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
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 |
$121.55 |
$1,778.23 |
| Zone High |
$137.76 |
$2,015.32 |
| In Buy Zone? |
Yes
|
Yes
|