MercadoLibre (NASDAQ:MELI) and AO World (OTCMKTS:AOWDF) Head-To-Head Contrast

AO World (OTCMKTS:AOWDF) and MercadoLibre (NASDAQ:MELI) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Institutional & Insider Ownership

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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AO World and MercadoLibre”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AO World	$2.13 billion	0.27	-$41.52 million	N/A	N/A
MercadoLibre	$28.89 billion	3.31	$2.00 billion	$37.89	49.84

MercadoLibre has higher revenue and earnings than AO World.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AO World and MercadoLibre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AO World	0	0	0	0	0.00
MercadoLibre	0	6	11	0	2.65

MercadoLibre has a consensus price target of $2,258.67, suggesting a potential upside of 19.60%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than AO World.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AO World	N/A	N/A	N/A
MercadoLibre	6.04%	29.58%	4.82%

Risk & Volatility

AO World has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

MercadoLibre beats AO World on 12 of the 12 factors compared between the two stocks.

About AO World

AO World plc, together with its subsidiaries, engages in the online retailing of domestic appliances the United Kingdom and Germany. It retails fridge freezers, cookers and washing machines, and audiovisual equipment, as well as computing, mobile, gaming, and smart home technology products. The company also provides logistics and transport services. In addition, it engages in the investment activities; and waste electrical and electronic equipment (WEEE) recycling activities. The company sells its products through its websites, marketplaces, and third-party websites. AO World plc was founded in 2000 and is headquartered in Bolton, the United Kingdom.

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.