The Trade Desk (TTD) & MercadoLibre (MELI) Head-To-Head Comparison
The Trade Desk (NASDAQ: TTD) and MercadoLibre (NASDAQ:MELI) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
This table compares The Trade Desk and MercadoLibre’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Trade Desk||13.92%||26.34%||9.17%|
MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. The Trade Desk does not pay a dividend. MercadoLibre pays out 18.4% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for The Trade Desk and MercadoLibre, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Trade Desk||0||1||7||0||2.88|
The Trade Desk presently has a consensus target price of $57.63, indicating a potential downside of 3.65%. MercadoLibre has a consensus target price of $261.67, indicating a potential downside of 9.83%. Given The Trade Desk’s stronger consensus rating and higher probable upside, equities research analysts plainly believe The Trade Desk is more favorable than MercadoLibre.
Earnings and Valuation
This table compares The Trade Desk and MercadoLibre’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Trade Desk||$251.52 million||9.70||$64.25 million||$0.84||71.20|
|MercadoLibre||$1.08 billion||11.87||$249.48 million||$3.26||89.02|
MercadoLibre has higher revenue and earnings than The Trade Desk. The Trade Desk is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
62.8% of The Trade Desk shares are held by institutional investors. Comparatively, 85.8% of MercadoLibre shares are held by institutional investors. 26.9% of The Trade Desk shares are held by company insiders. Comparatively, 0.4% of MercadoLibre shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
MercadoLibre beats The Trade Desk on 9 of the 15 factors compared between the two stocks.
About The Trade Desk
The Trade Desk, Inc. is a technology company. The Company provides a self-service platform that enables clients to purchase and manage digital advertising campaigns across various advertising formats, including display, video and social, and on a range of devices, including computers, mobile devices and connected television. Its platform enables a media planner or buyer at an advertising agency to purchase digital media programmatically on various media exchanges and sell-side platforms; acquire and use third-party data to optimize and measure digital advertising campaigns; deploy their, or their client’s, own first-party data in order to optimize campaign efficacy; link digital campaigns to offline sales results or other business objectives; access other services, such as its data management platform and publisher management platform marketplace, and use its user interface and application programming interfaces (APIs) to build their own technology on top of the Company’s platform.
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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