u/1i3to

• Earnings Multiples: Nu Holdings trades at a significantly lower P/E multiple (~24x) compared to MercadoLibre (~47x). Analysts attribute this to MELI's dual-moat in logistics and e-commerce, which typically commands a premium over pure-play fintech.
• Profitability vs. Expansion: Nu maintains higher net margins (18.8%) due to its branchless banking model. MELI’s margins (6.9%) are currently compressed by aggressive "wartime" capital allocation into logistics, free shipping subsidies, and credit card expansion in Mexico and Argentina.
• Growth Trajectories: Both companies are maintaining hyper-growth status (>45% revenue growth). Nu’s valuation is increasingly supported by its expansion beyond Brazil into Mexico (13M customers) and Colombia (4M customers). MELI’s valuation is bolstered by its Fintech arm (Mercado Pago), which now processes TPV (Total Payment Volume) at roughly 4x its GMV (Gross Merchandise Value).
• Credit Risk: MELI’s valuation reflects higher perceived risk in its loan book, which targets subprime/unbanked segments, whereas Nu is perceived to target higher-quality borrowers with longer-term lending products.

I didn’t realise I can change character hair during creation.

If you like MELI and latam take a look at NU