MercadoLibre (NASDAQ:MELI) & Newegg Commerce (NASDAQ:NEGG) Head to Head Review

MercadoLibre (NASDAQ:MELI) and Newegg Commerce (NASDAQ:NEGG) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

87.6% of MercadoLibre shares are held by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are held by institutional investors. 0.3% of MercadoLibre shares are held by company insiders. Comparatively, 22.9% of Newegg Commerce shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

MercadoLibre has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Newegg Commerce has a beta of 4.17, suggesting that its share price is 317% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MercadoLibre	6.91%	33.73%	5.71%
Newegg Commerce	N/A	N/A	N/A

Valuation & Earnings

This table compares MercadoLibre and Newegg Commerce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MercadoLibre	$28.89 billion	3.25	$2.00 billion	$39.40	47.06
Newegg Commerce	$1.24 million	1,291.21	-$43.33 million	N/A	N/A

MercadoLibre has higher revenue and earnings than Newegg Commerce.

Analyst Recommendations

This is a summary of recent recommendations for MercadoLibre and Newegg Commerce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MercadoLibre	0	3	15	1	2.89
Newegg Commerce	1	0	0	0	1.00

MercadoLibre currently has a consensus price target of $2,685.33, suggesting a potential upside of 44.83%. Given MercadoLibre’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MercadoLibre is more favorable than Newegg Commerce.

Summary

MercadoLibre beats Newegg Commerce on 10 of the 13 factors compared between the two stocks.

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.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.