MELI vs NFLX: Which Is the Better Buy?
Side-by-side comparison of MercadoLibre, Inc. and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
MercadoLibre, Inc. · Consumer Cyclical
$1,767.42
+41.4% upside to fair value
High Conviction
Grade A
VS
Netflix, Inc. · Communication Services
$91.02
+95.7% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+95.7%).
NFLX trades at a lower forward P/E
(28.7x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MELI |
NFLX |
| Current Price |
$1,767.42 |
$91.02 |
| Fair Value Estimate |
$2,500.00 |
$178.10 |
| Upside to Fair Value |
+41.4%
|
+95.7%
|
| Market Cap |
$89.6B |
$383.3B |
| Forward P/E |
35.0x
|
28.7x
|
| EV / EBITDA |
18.5x
|
11.4x
|
| Price / Sales |
3.1x
|
8.2x
|
| Price / FCF |
8.9x
|
32.2x
|
| Revenue Growth YoY |
+39.1%
|
+16.2%
|
| Gross Margin |
44.5%
|
49.0%
|
| Operating Margin |
11.1%
|
29.7%
|
| Return on Equity |
33.7%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.1%
|
3.1%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28…
Accumulation Zones
| Metric |
MELI |
NFLX |
| Zone Low |
$1,875.00 |
$133.57 |
| Zone High |
$2,125.00 |
$151.38 |
| In Buy Zone? |
Yes
|
Yes
|