Online Vacation Center (OTCMKTS:ONVC) versus MercadoLibre (NASDAQ:MELI) Critical Comparison

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

Profitability

This table compares Online Vacation Center and MercadoLibre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	2.63%	N/A	N/A
MercadoLibre	6.04%	29.58%	4.82%

Institutional & Insider Ownership

87.6% of MercadoLibre shares are held by institutional investors. 71.3% of Online Vacation Center shares are held by company insiders. Comparatively, 0.3% of MercadoLibre shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Online Vacation Center and MercadoLibre”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Online Vacation Center	$19.46 million	0.75	$490,000.00	$0.07	30.00
MercadoLibre	$28.89 billion	2.80	$2.00 billion	$37.89	42.09

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

Volatility & Risk

Online Vacation Center has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Online Vacation Center and MercadoLibre, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Online Vacation Center	0	0	0	0	0.00
MercadoLibre	1	5	11	1	2.67

MercadoLibre has a consensus target price of $2,255.33, suggesting a potential upside of 41.41%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre is more favorable than Online Vacation Center.

Summary

MercadoLibre beats Online Vacation Center on 13 of the 15 factors compared between the two stocks.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, 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.