MercadoLibre (NASDAQ:MELI) & Global-e Online (NASDAQ:GLBE) Financial Survey

Global-e Online (NASDAQ:GLBE) and MercadoLibre (NASDAQ:MELI) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

94.6% of Global-e Online shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 11.6% of Global-e Online shares are owned by company insiders. Comparatively, 0.3% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Global-e Online and MercadoLibre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-e Online	11.37%	12.64%	8.86%
MercadoLibre	6.04%	29.58%	4.82%

Risk & Volatility

Global-e Online has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Valuation and Earnings

This table compares Global-e Online and MercadoLibre”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-e Online	$962.20 million	7.33	$68.27 million	$0.65	63.89
MercadoLibre	$28.89 billion	3.31	$2.00 billion	$37.89	49.84

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Global-e Online and MercadoLibre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-e Online	1	1	13	0	2.80
MercadoLibre	0	6	11	0	2.65

Global-e Online presently has a consensus price target of $44.83, indicating a potential upside of 7.95%. MercadoLibre has a consensus price target of $2,258.67, indicating a potential upside of 19.60%. Given MercadoLibre’s higher possible upside, analysts plainly believe MercadoLibre is more favorable than Global-e Online.

Summary

Global-e Online beats MercadoLibre on 8 of the 14 factors compared between the two stocks.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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.