SQLMesh is an open-source framework for managing SQL and Python data transformations, offering features like versioning, built-in orchestration, and environment isolation that distinguish it from dbt. Unlike dbt's compile-and-run model, SQLMesh provides a stateful execution approach that minimizes unnecessary recomputation and allows for automated backfills and testing within isolated environments. This makes SQLMesh suitable for teams seeking a more integrated data transformation solution with enhanced control and reliability.