i3 Verticals (IIIV) & Mercadolibre (MELI) Critical Contrast
i3 Verticals (NASDAQ:IIIV) and Mercadolibre (NASDAQ:MELI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Mercadolibre pays an annual dividend of $0.15 per share and has a dividend yield of 0.0%. i3 Verticals does not pay a dividend. Mercadolibre pays out 5.9% of its earnings in the form of a dividend. Mercadolibre has raised its dividend for 2 consecutive years.
This is a summary of recent recommendations for i3 Verticals and Mercadolibre, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
i3 Verticals currently has a consensus target price of $22.75, suggesting a potential upside of 7.41%. Mercadolibre has a consensus target price of $356.75, suggesting a potential upside of 1.77%. Given i3 Verticals’ stronger consensus rating and higher possible upside, research analysts plainly believe i3 Verticals is more favorable than Mercadolibre.
This table compares i3 Verticals and Mercadolibre’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares i3 Verticals and Mercadolibre’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|i3 Verticals||$323.51 million||1.72||-$6.90 million||$0.56||37.82|
|Mercadolibre||$1.40 billion||11.33||$13.78 million||$2.53||138.56|
Mercadolibre has higher revenue and earnings than i3 Verticals. i3 Verticals 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
25.1% of i3 Verticals shares are owned by institutional investors. Comparatively, 93.4% 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 company is poised for long-term growth.
Mercadolibre beats i3 Verticals on 10 of the 16 factors compared between the two stocks.
About i3 Verticals
i3 Verticals, Inc. provides integrated payment and software solutions to small- and medium-sized businesses (SMBs) and organizations in education, non-profit, public sector, property management, and healthcare markets in the United States. The company offers payment processing services, including merchant onboarding, risk and underwriting, authorization, settlement, chargeback processing, and other merchant support. Its payment processing services enable clients to accept electronic payments, facilitating the exchange of funds and transaction data between clients, financial institutions, and payment networks. The company also licenses software; and provides ongoing support, and other POS-related solutions. It offers its solutions to its clients through direct sales force, as well as through a network of distribution partners, including independent software vendors, value-added resellers, independent sales organizations, and other referral partners, such as financial institutions. The company was founded in 2012 and is headquartered in Nashville, Tennessee.
MercadoLibre, Inc. hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The company's Marketplace platform enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list and purchase items and services. It also provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, real estate, and services outside the Marketplace platform; and MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre Marketplace by providing a mechanism that allows its users to send and receive payments online. In addition, the company offers MercadoLibre Advertising platform, which enables large retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing services; and advertisers to place text, display, or banner advertisements in order to promote their brands and offerings on its Webpages and associated sites. Further, it provides MercadoShops, a software-as-a-service, hosted online store solution that enables users to set-up, manage, and promote their own Webstores; and MercadoEnvios, a shipping service for marketplace users. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
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