MercadoLibre (NASDAQ:MELI) & PetMed Express (NASDAQ:PETS) Head to Head Contrast

MercadoLibre (NASDAQ:MELI) and PetMed Express (NASDAQ:PETS) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for MercadoLibre and PetMed Express, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MercadoLibre	0	2	15	1	2.94
PetMed Express	2	1	0	0	1.33

MercadoLibre currently has a consensus price target of $2,822.78, indicating a potential upside of 29.92%. PetMed Express has a consensus price target of $3.20, indicating a potential upside of 22.14%. Given MercadoLibre’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MercadoLibre is more favorable than PetMed Express.

Profitability

This table compares MercadoLibre and PetMed Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MercadoLibre	8.52%	43.06%	7.57%
PetMed Express	N/A	N/A	N/A

Risk & Volatility

MercadoLibre has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

87.6% of MercadoLibre shares are held by institutional investors. Comparatively, 73.3% of PetMed Express shares are held by institutional investors. 0.3% of MercadoLibre shares are held by insiders. Comparatively, 1.1% of PetMed Express shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares MercadoLibre and PetMed Express”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MercadoLibre	$20.78 billion	5.30	$1.91 billion	$40.49	53.66
PetMed Express	$281.06 million	0.19	-$7.46 million	$0.01	262.00

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

Summary

MercadoLibre beats PetMed Express on 13 of the 15 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 PetMed Express

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.