Critical Analysis: Akso Health Group (NASDAQ:AHG) versus MercadoLibre (NASDAQ:MELI)

Akso Health Group (NASDAQ:AHG) 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 institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Volatility & Risk

Akso Health Group has a beta of -0.55, indicating that its share price is 155% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

1.2% of Akso Health Group 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 insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Akso Health Group and MercadoLibre, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akso Health Group	1	0	0	0	1.00
MercadoLibre	0	2	13	1	2.94

MercadoLibre has a consensus price target of $2,861.25, suggesting a potential upside of 36.00%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre is more favorable than Akso Health Group.

Profitability

This table compares Akso Health Group and MercadoLibre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akso Health Group	N/A	N/A	N/A
MercadoLibre	7.93%	41.35%	7.26%

Earnings and Valuation

This table compares Akso Health Group and MercadoLibre”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akso Health Group	$14.78 million	59.74	-$134.98 million	N/A	N/A
MercadoLibre	$26.19 billion	4.07	$1.91 billion	$40.98	51.34

MercadoLibre has higher revenue and earnings than Akso Health Group.

Summary

MercadoLibre beats Akso Health Group on 12 of the 13 factors compared between the two stocks.

About Akso Health Group

Akso Health Group operates a social e-commerce mobile platform in China. The company operates Xiaobai Maimai App, which offers food and beverage products, wine, cosmetic products, fashion and apparel, entertainment products, housewares, home appliances, and cost-saving promotions at petrol gas stations. It also offers consultancy and information technology support services; provides health treatment services; sells medical devices; and trades in branded products, as well as promotes products. The company was formerly known as Xiaobai Maimai Inc. and changed its name to Akso Health Group in December 2021. Akso Health Group was founded in 2014 and is headquartered in Qingdao, China.

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.