Reviewing MercadoLibre (NASDAQ:MELI) & D-MARKET Electronic Services & Trading (NASDAQ:HEPS)

D-MARKET Electronic Services & Trading (NASDAQ:HEPSGet Free Report) and MercadoLibre (NASDAQ:MELIGet Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for D-MARKET Electronic Services & Trading and MercadoLibre, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
D-MARKET Electronic Services & Trading 1 4 0 0 1.80
MercadoLibre 0 3 16 1 2.90

D-MARKET Electronic Services & Trading presently has a consensus target price of $3.29, suggesting a potential upside of 38.61%. MercadoLibre has a consensus target price of $2,848.82, suggesting a potential upside of 41.32%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than D-MARKET Electronic Services & Trading.

Risk & Volatility

D-MARKET Electronic Services & Trading has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

40.5% of D-MARKET Electronic Services & Trading shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are owned by company insiders. Comparatively, 0.3% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares D-MARKET Electronic Services & Trading and MercadoLibre”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
D-MARKET Electronic Services & Trading $62.56 billion 0.01 -$48.95 million ($0.25) -9.48
MercadoLibre $26.19 billion 3.90 $1.91 billion $40.98 49.19

MercadoLibre has lower revenue, but higher earnings than D-MARKET Electronic Services & Trading. D-MARKET Electronic Services & Trading is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares D-MARKET Electronic Services & Trading and MercadoLibre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
D-MARKET Electronic Services & Trading -5.42% -113.69% -10.63%
MercadoLibre 7.93% 39.03% 6.78%

Summary

MercadoLibre beats D-MARKET Electronic Services & Trading on 12 of the 15 factors compared between the two stocks.

About D-MARKET Electronic Services & Trading

(Get Free Report)

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

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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