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

Risk & Volatility

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

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.

Valuation & Earnings

This table compares MercadoLibre and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MercadoLibre $1.08 billion $249.48 million 85.72
MercadoLibre Competitors $2.65 billion $890.79 million -31.42

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

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

Profitability

This table compares MercadoLibre and its peers’ 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%

Analyst Ratings

This is a breakdown of current ratings for MercadoLibre and its peers, as provided 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 currently has a consensus price target of $261.67, indicating a potential downside of 6.37%. As a group, “E-commerce & Auction Services” companies have a potential upside of 7.59%. Given MercadoLibre’s peers stronger consensus rating and higher probable upside, analysts clearly believe MercadoLibre has less favorable growth aspects than its peers.

Summary

MercadoLibre peers 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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