Verdict: Side-by-side breakdown using the Bull Rankings model. MELI scored 77.4, CHWY scored 63.0 — MELI leads.
Compare another set
MELI
MercadoLibre, Inc.
Internet Retail · Quality-Growth
77.4
$1,889.85 · $95.8B
fundamentals as of
Score gap
14.4
MELI leads
CHWY
Chewy, Inc.
Internet Retail · Quality-Growth
63
$18.95 · $7.6B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestCHWY29.2x
Fastest growthMELI+46.0%
Strongest balance sheetMELI1.69
Highest qualityMELI75 / 100
Largest discount to fair valueMELI-58%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
MELI
stronger →← stronger
CHWY
75
Qualityreturns · margins · balance sheet
73
96
Growthrevenue & earnings expansion
71
64
Valuevaluation vs sector peers
48
MELI is stronger on 3 of 3 pillars.
Fundamentals, head-to-head
MELI
CHWY
$12.4bA-
FCF
$568mC+
+46.0%A
Rev
+6.2%C+
1.69C+
D/E
3.13C
51.4xD
P/E
29.2xC
1.01B+
PEG
0.33A
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
MELI
CHWY
58% below
Price vs fair valuelower is cheaper
2% below
~-7%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~8%/yr
+86%
1-yr DCF upside
-8%
+141%
5-yr DCF upside
+2%
+248%
10-yr DCF upside
+17%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
MELI
Why this score
Durable high returns
CHWY
Why this score
Durable high returns
The companies
MELIMercadoLibre, Inc.
Internet Retail · $1,889.85 · beta 1.31
Why now
Internet Retail · market cap $95.8b. Down 22% from 52-week high of $2428.00 — deep drawdown territory. Revenue growing +46% — in hypergrowth territory. 26 sell-side analysts rate this a Buy with a mean 1-yr target of $2,276 (implying +20% upside).
Moat
ROE 24% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income, mostly because of cash released from working capital ($7.5b) — a release that doesn't repeat every year the way earnings can. $95.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 51.4x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
CHWYChewy, Inc.
Internet Retail · $18.95 · beta 1.38
Why now
Internet Retail · market cap $7.6b. Down 52% from 52-week high of $39.70 — deep drawdown territory. PEG 0.33 — paying under fair value for the growth rate. 22 sell-side analysts rate this a Buy with a mean 1-yr target of $28.64 (implying +51% upside).
Moat
ROE 72% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income, mostly because of stock-based pay ($298m) — a real cost to shareholders, paid in shares rather than cash.
Risk
D/E 3.13 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 52% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 2.1% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Verdict — model-derived comparison
MELI leads CHWY by 2.9 points (72.3 to 69.4), its sharpest advantage coming in Rev (grade A). A contrarian could still prefer CHWY for its stronger P/E (grade C).
Our AI analyst is busy right now, so this verdict is drawn directly from the pillars, grades and DCF above.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where MELI and CHWY diverge
On the headline score the gap is 14.4 points in favor of MELI. The widest single difference is Growth, where MELI leads by 25.9 points.
GrowthMELI 96.4 · CHWY 70.5MELI +25.9
ValueMELI 64.3 · CHWY 48.4MELI +15.9
QualityMELI 74.9 · CHWY 73.3level
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is MELI or CHWY the better stock?
MELI scores higher: MELI 77.4, CHWY 63.0 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do MELI and CHWY differ most?
The widest gap is growth, where MELI leads by 26 points on the 0–100 pillar scale. MELI also leads value, while quality is effectively level between them.
How are MELI and CHWY scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.