MercadoLibre (NASDAQ:MELI – Get Free Report) and Amazon.com (NASDAQ:AMZN – Get Free Report) are both large-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Profitability
This table compares MercadoLibre and Amazon.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MercadoLibre | 5.30% | 26.54% | 4.19% |
| Amazon.com | 17.44% | 18.00% | 8.97% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for MercadoLibre and Amazon.com, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MercadoLibre | 0 | 6 | 11 | 0 | 2.65 |
| Amazon.com | 0 | 2 | 56 | 1 | 2.98 |
Earnings & Valuation
This table compares MercadoLibre and Amazon.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MercadoLibre | $35.18 billion | 2.85 | $2.00 billion | $36.77 | 53.80 |
| Amazon.com | $716.92 billion | 3.89 | $77.67 billion | $12.43 | 20.80 |
Amazon.com has higher revenue and earnings than MercadoLibre. Amazon.com is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
MercadoLibre has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
87.6% of MercadoLibre shares are owned by institutional investors. Comparatively, 72.2% of Amazon.com shares are owned by institutional investors. 0.3% of MercadoLibre shares are owned by company insiders. Comparatively, 8.9% of Amazon.com shares are owned 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.
Summary
Amazon.com beats MercadoLibre on 11 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 Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
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