DoorDash (NASDAQ:DASH) vs. MercadoLibre (NASDAQ:MELI) Head-To-Head Contrast

DoorDash (NASDAQ:DASHGet Free Report) and MercadoLibre (NASDAQ:MELIGet Free Report) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
DoorDash -4.61% -6.28% -4.01%
MercadoLibre 7.17% 39.46% 6.64%

Earnings & Valuation

This table compares DoorDash and MercadoLibre’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DoorDash $8.64 billion 5.34 -$558.00 million ($1.08) -104.34
MercadoLibre $14.47 billion 5.46 $987.00 million $22.35 69.76

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DoorDash and MercadoLibre, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DoorDash 0 8 16 0 2.67
MercadoLibre 0 1 11 0 2.92

DoorDash presently has a consensus target price of $134.79, suggesting a potential upside of 19.61%. MercadoLibre has a consensus target price of $1,881.92, suggesting a potential upside of 20.70%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than DoorDash.

Institutional and Insider Ownership

90.6% of DoorDash shares are held by institutional investors. Comparatively, 87.6% of MercadoLibre shares are held by institutional investors. 7.9% of DoorDash shares are held by company insiders. Comparatively, 0.1% of MercadoLibre shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

DoorDash has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Summary

MercadoLibre beats DoorDash on 10 of the 14 factors compared between the two stocks.

About DoorDash

(Get Free Report)

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.

About MercadoLibre

(Get Free Report)

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.

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