SEA (NYSE:SE – Get Free Report) and MercadoLibre (NASDAQ:MELI – Get Free Report) are both large-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Valuation & Earnings
This table compares SEA and MercadoLibre”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SEA | $22.94 billion | 2.99 | $1.58 billion | $2.59 | 43.28 |
| MercadoLibre | $28.89 billion | 3.47 | $2.00 billion | $36.77 | 53.80 |
Insider & Institutional Ownership
59.5% of SEA shares are held by institutional investors. Comparatively, 87.6% of MercadoLibre shares are held by institutional investors. 0.2% of SEA shares are held by company insiders. Comparatively, 0.3% of MercadoLibre shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations for SEA and MercadoLibre, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEA | 1 | 2 | 8 | 1 | 2.75 |
| MercadoLibre | 0 | 6 | 11 | 0 | 2.65 |
SEA presently has a consensus target price of $149.40, suggesting a potential upside of 33.29%. MercadoLibre has a consensus target price of $2,272.00, suggesting a potential upside of 14.84%. Given SEA’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SEA is more favorable than MercadoLibre.
Volatility & Risk
SEA has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Profitability
This table compares SEA and MercadoLibre’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEA | 5.98% | 13.54% | 5.59% |
| MercadoLibre | 5.30% | 26.54% | 4.19% |
Summary
MercadoLibre beats SEA on 9 of the 15 factors compared between the two stocks.
About SEA
Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.
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.
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