Comparing GSV (OTCMKTS:GSVI) and MercadoLibre (NASDAQ:MELI)

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

Profitability

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

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

Institutional & Insider Ownership

87.6% of MercadoLibre shares are held by institutional investors. 28.7% of GSV 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 Recommendations

This is a summary of current ratings and recommmendations for GSV and MercadoLibre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSV	0	0	0	0	0.00
MercadoLibre	0	2	14	1	2.94

MercadoLibre has a consensus target price of $2,810.88, suggesting a potential upside of 37.23%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts clearly believe MercadoLibre is more favorable than GSV.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSV	N/A	N/A	N/A	N/A	N/A
MercadoLibre	$20.78 billion	5.00	$1.91 billion	$40.49	50.59

MercadoLibre has higher revenue and earnings than GSV.

Summary

MercadoLibre beats GSV on 9 of the 10 factors compared between the two stocks.

About GSV

GSV, Inc. is an oil and gas exploration company. It operates oil and gas wells in Louisiana; and oil and gas prospects in Texas. The company was founded in 1994 and is based in Westport, Connecticut.

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.