D-MARKET Electronic Services & Trading (NASDAQ:HEPS – Get Free Report) and MercadoLibre (NASDAQ:MELI – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Insider and Institutional 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 insiders. Comparatively, 0.3% of MercadoLibre shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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% |
Analyst Ratings
| 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 currently has a consensus target price of $3.29, indicating a potential upside of 36.31%. MercadoLibre has a consensus target price of $2,848.82, indicating a potential upside of 47.32%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than D-MARKET Electronic Services & Trading.
Valuation and Earnings
This table compares D-MARKET Electronic Services & Trading and MercadoLibre”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| D-MARKET Electronic Services & Trading | $1.74 billion | 0.45 | -$48.95 million | ($0.25) | -9.64 |
| MercadoLibre | $20.78 billion | 4.72 | $1.91 billion | $40.98 | 47.19 |
MercadoLibre has higher revenue and 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.
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.
Summary
MercadoLibre beats D-MARKET Electronic Services & Trading on 13 of the 15 factors compared between the two stocks.
About D-MARKET Electronic Services & Trading
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
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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