MercadoLibre (NASDAQ: MELI) is one of 29 public companies in the “E-commerce & Auction Services” industry, but how does it weigh in compared to its rivals? We will compare MercadoLibre to similar businesses based on the strength of its institutional ownership, earnings, profitability, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares MercadoLibre and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MercadoLibre $1.08 billion $249.48 million 85.72
MercadoLibre Competitors $2.66 billion $890.81 million -31.42

MercadoLibre’s rivals have higher revenue and earnings than MercadoLibre. MercadoLibre is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

85.8% of MercadoLibre shares are held by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are held by institutional investors. 0.4% of MercadoLibre shares are held by company insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for MercadoLibre and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MercadoLibre 1 5 6 0 2.42
MercadoLibre Competitors 114 733 1566 87 2.65

MercadoLibre presently has a consensus target price of $261.67, suggesting a potential downside of 6.37%. As a group, “E-commerce & Auction Services” companies have a potential upside of 7.81%. Given MercadoLibre’s rivals stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre has less favorable growth aspects than its rivals.

Dividends

MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. MercadoLibre pays out 18.4% of its earnings in the form of a dividend. As a group, “E-commerce & Auction Services” companies pay a dividend yield of 0.2% and pay out 18.4% of their earnings in the form of a dividend.

Profitability

This table compares MercadoLibre and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MercadoLibre 13.37% 37.59% 11.81%
MercadoLibre Competitors -1,538.29% -32.31% -7.94%

Risk and Volatility

MercadoLibre has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, MercadoLibre’s rivals have a beta of 1.53, suggesting that their average stock price is 53% more volatile than the S&P 500.

Summary

MercadoLibre rivals beat MercadoLibre on 7 of the 13 factors compared.

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.

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