MOGU (NYSE:MOGU) & MercadoLibre (NASDAQ:MELI) Critical Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MOGU and MercadoLibre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	N/A
MercadoLibre	0	1	11	0	2.92

MercadoLibre has a consensus price target of $1,790.36, suggesting a potential upside of 27.34%. Given MercadoLibre’s higher possible upside, analysts clearly believe MercadoLibre is more favorable than MOGU.

Valuation & Earnings

This table compares MOGU and MercadoLibre’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$200.53 million	0.08	-$25.92 million	N/A	N/A
MercadoLibre	$14.47 billion	4.93	$987.00 million	$19.54	71.96

MercadoLibre has higher revenue and earnings than MOGU.

Institutional and Insider Ownership

19.1% of MOGU shares are held by institutional investors. Comparatively, 87.6% of MercadoLibre shares are held by institutional investors. 19.8% of MOGU shares are held by company insiders. Comparatively, 0.1% of MercadoLibre shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
MercadoLibre	6.82%	39.07%	6.25%

Volatility & Risk

MOGU has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Summary

MercadoLibre beats MOGU on 10 of the 11 factors compared between the two stocks.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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.