MercadoLibre (NASDAQ:MELI – Get Free Report) and Bed Bath & Beyond (NYSE:BBBY – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Insider and Institutional Ownership
87.6% of MercadoLibre shares are held by institutional investors. Comparatively, 76.3% of Bed Bath & Beyond shares are held by institutional investors. 0.3% of MercadoLibre shares are held by company insiders. Comparatively, 1.8% of Bed Bath & Beyond shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares MercadoLibre and Bed Bath & Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MercadoLibre | 6.04% | 29.58% | 4.82% |
| Bed Bath & Beyond | -5.76% | -27.60% | -12.99% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MercadoLibre | $28.89 billion | 3.16 | $2.00 billion | $37.89 | 47.54 |
| Bed Bath & Beyond | $1.04 billion | 0.35 | -$84.62 million | ($0.95) | -5.23 |
MercadoLibre has higher revenue and earnings than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for MercadoLibre and Bed Bath & Beyond, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MercadoLibre | 0 | 6 | 11 | 1 | 2.72 |
| Bed Bath & Beyond | 1 | 4 | 1 | 0 | 2.00 |
MercadoLibre currently has a consensus price target of $2,258.67, indicating a potential upside of 25.38%. Bed Bath & Beyond has a consensus price target of $8.67, indicating a potential upside of 74.56%. Given Bed Bath & Beyond’s higher probable upside, analysts clearly believe Bed Bath & Beyond is more favorable than MercadoLibre.
Risk & Volatility
MercadoLibre has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.85, meaning that its share price is 185% more volatile than the S&P 500.
Summary
MercadoLibre beats Bed Bath & Beyond on 12 of the 15 factors compared between the two stocks.
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.
About Bed Bath & Beyond
Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.
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