Analyzing MercadoLibre (NASDAQ:MELI) & MDWerks (OTCMKTS:MDWK)

MDWerks (OTCMKTS:MDWK) and MercadoLibre (NASDAQ:MELI) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for MDWerks and MercadoLibre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDWerks	0	0	0	0	0.00
MercadoLibre	1	3	15	1	2.80

MercadoLibre has a consensus price target of $2,842.94, indicating a potential upside of 32.24%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than MDWerks.

Institutional & Insider Ownership

87.6% of MercadoLibre shares are held by institutional investors. 0.3% of MercadoLibre shares 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.

Volatility and Risk

MDWerks has a beta of 17.6, suggesting that its stock price is 1,660% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDWerks	-179.07%	-308.26%	-88.71%
MercadoLibre	7.93%	39.03%	6.78%

Valuation and Earnings

This table compares MDWerks and MercadoLibre”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDWerks	$2.36 million	38.08	-$1.62 million	($0.03)	-12.80
MercadoLibre	$20.78 billion	5.25	$1.91 billion	$40.98	52.46

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

Summary

MercadoLibre beats MDWerks on 13 of the 15 factors compared between the two stocks.

About MDWerks

MDWerks, Inc., together with its subsidiaries, provides energy waving technologies in the United States. The company offers green and radio wave technologies. It also produces and sells alcoholic beverages, including whiskey and vodka. In addition, the company develops radio frequency applications. It serves structural engineering, food and beverage, alcoholic beverages, manufacturing, and adhesives industries. MDWerks, Inc. is based in Green Cove Springs, Florida.

About MercadoLibre

MercadoLibre, Inc. operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.