Comparing MercadoLibre (NASDAQ:MELI) & Seven and I (OTCMKTS:SVNDY)

Seven and I (OTCMKTS:SVNDY) and MercadoLibre (NASDAQ:MELI) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Seven and I	2.89%	8.20%	3.23%
MercadoLibre	4.91%	25.15%	3.81%

Institutional and Insider Ownership

0.0% of Seven and I shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 0.3% of MercadoLibre shares are owned 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

Seven and I has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Seven and I and MercadoLibre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	2	0	0	2.00
MercadoLibre	0	5	13	1	2.79

MercadoLibre has a consensus price target of $2,170.62, suggesting a potential upside of 43.56%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts clearly believe MercadoLibre is more favorable than Seven and I.

Earnings and Valuation

This table compares Seven and I and MercadoLibre”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$69.63 billion	0.44	$1.96 billion	$0.80	16.66
MercadoLibre	$28.89 billion	2.65	$2.00 billion	$37.28	40.56

MercadoLibre has lower revenue, but higher earnings than Seven and I. Seven and I 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 Seven and I on 14 of the 15 factors compared between the two stocks.

About Seven and I

Seven & i Holdings is a Japan-based retail group whose businesses include convenience stores, supermarkets and other retail operations. Its best-known brand is 7-Eleven, which serves customers through stores in Japan, North America and other international markets. The company’s retail offerings include food, beverages, household goods and everyday services. The group also operates businesses in Japan under brands including Ito-Yokado, a general merchandise and supermarket retailer. Its activities have included financial services and other customer-focused services alongside retailing.

About MercadoLibre

MercadoLibre, Inc. operates an online commerce and financial technology platform focused on Latin America. Founded in Argentina in 1999, the company connects buyers and sellers through its marketplace, where businesses and individuals can list and purchase a wide range of products. The company’s services also include Mercado Pago, which offers digital payment and financial services for transactions on and off its marketplace. MercadoLibre supports commerce with services such as Mercado Envíos, its shipping and logistics platform, and provides advertising tools for merchants and brands.