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 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
MercadoLibre, Inc. · Consumer Cyclical
$1,828.94
+25.8% upside to fair value
Med Conviction
Grade B+
High Quality
QuantHub Verdict
MELI has more upside to fair value
(+25.8%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
MELI |
| Current Price |
$98.06 |
$1,828.94 |
| Fair Value Estimate |
$99.50 |
$2,300.00 |
| Upside to Fair Value |
+1.5%
|
+25.8%
|
| Market Cap |
$11.1B |
$92.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
33.0x
|
| Price / Sales |
1.0x
|
2.6x
|
| Price / FCF |
8.2x
|
7.4x
|
| Revenue Growth YoY |
-4.3%
|
+49.8%
|
| Gross Margin |
56.1%
|
42.7%
|
| Operating Margin |
17.8%
|
8.3%
|
| Return on Equity |
29.7%
|
26.5%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.24%
|
13.44%
|
| Analyst Consensus |
Sell
|
Buy
|
Investment Thesis
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
MercadoLibre operates Latin America's leading ecommerce marketplace alongside Mercado Pago payments, credit, logistics, advertising and loyalty products, creating a broad ecosystem with meaningful network effects and cross-sell. Business momentum remains strong: revenue and financial income grew 49.8% year over year in the most recent quarter to $10.169 billion, GMV increased 44%, TPV rose 56%, a…
Accumulation Zones
| Metric |
LULU |
MELI |
| Zone Low |
$74.62 |
$1,725.00 |
| Zone High |
$84.58 |
$1,955.00 |
| In Buy Zone? |
No
|
Yes
|