MercadoLibre (NASDAQ: MELI) and Points International (NASDAQ:PCOM) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares MercadoLibre and Points International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MercadoLibre $1.08 billion 9.89 $249.48 million $3.26 74.20
Points International $332.81 million 0.39 $8.99 million ($0.11) -81.55

MercadoLibre has higher revenue and earnings than Points International. Points International is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.

Dividends

MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Points International does not pay a dividend. MercadoLibre pays out 18.4% of its earnings in the form of a dividend.

Volatility & Risk

MercadoLibre has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MercadoLibre and Points International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MercadoLibre 1 6 5 0 2.33
Points International 0 0 3 0 3.00

MercadoLibre presently has a consensus price target of $261.67, indicating a potential upside of 8.17%. Points International has a consensus price target of $13.50, indicating a potential upside of 50.50%. Given Points International’s stronger consensus rating and higher possible upside, analysts clearly believe Points International is more favorable than MercadoLibre.

Insider & Institutional Ownership

92.4% of MercadoLibre shares are owned by institutional investors. Comparatively, 37.9% of Points International shares are owned by institutional investors. 0.4% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares MercadoLibre and Points International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MercadoLibre 13.37% 37.59% 11.81%
Points International -0.53% 7.56% 3.28%

Summary

MercadoLibre beats Points International on 13 of the 16 factors compared between the two stocks.

About MercadoLibre

MercadoLibre, Inc. is an e-commerce company. The Company enables commerce through its marketplace platform in Latin America, which is designed to provide users with a portfolio of services to facilitate commercial transactions. Its geographic segments are Brazil, Argentina, Mexico Venezuela and Other Countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America). It also operates online commerce platforms in the Dominican Republic, Honduras, Nicaragua, Salvador, Panama, Bolivia, Guatemala, Paraguay and Portugal. It offers an ecosystem of six integrated e-commerce services: the MercadoLibre Marketplace, the MercadoLibre Classifieds Service, the MercadoPago payments solution, the MercadoLibre advertising program, the MercadoShops online Webstores solution and the MercadoEnvios shipping service.

About Points International

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

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