Alibaba Group Holding Limited (BABA) vs MercadoLibre, Inc. (MELI)

Alibaba Group Holding Limited and MercadoLibre, Inc. are both Internet Retail companies. Alibaba Group Holding Limited is the larger, with a market value of $276.5B against $94.1B — 2.9× the size. Alibaba Group Holding Limited trades at the lower P/E: 24.0× against 49.9×. MercadoLibre, Inc. grew revenue faster over the last twelve months: 46.0% against 10.9%. Alibaba Group Holding Limited has the higher net margin (7.09% vs 5.30%) and the higher return on invested capital (2.99% vs 0.00%). Across the 21 metrics below, MercadoLibre, Inc. leads on 12 and Alibaba Group Holding Limited on 9.

Valuation

Metric BABA MELI Internet Retail median
P/E 23.98 49.88 24.35
P/S 1.66 2.64 0.69
P/B 1.56 11.87 1.66
Price to free cash flow n/m 7.50 15.23
EV/EBITDA 34.59 21.78 19.14
EV/Sales 1.50 2.41 0.75
Earnings yield 4.17% 2.00% (0.17%)
Free cash flow yield (10.55%) 13.34% 0.00%

Profitability

Metric BABA MELI Internet Retail median
Gross margin 38.26% 42.68% 43.51%
Operating margin 4.34% 8.26% 0.08%
Net margin 7.09% 5.30% 0.56%
Free cash flow margin 7.52% 35.27% 0.00%
Return on equity 6.93% 27.50% 0.00%
Return on assets 3.98% 4.42% 0.00%
Return on invested capital 2.99% 0.00% 0.00%

Growth

Metric BABA MELI Internet Retail median
Revenue growth (TTM) 10.89% 46.01% 10.80%
EPS growth (last fiscal year) (13.55%) 4.54% 14.02%
Revenue growth, 5-year CAGR 6.27% 48.70% 10.81%
Net income growth, 5-year CAGR (7.72%) 0.00% 0.00%

Health

Metric BABA MELI Internet Retail median
Debt to equity 0.24 1.36 0.10
Current ratio 1.36 1.12 1.48
Net debt to EBITDA (0.93) (1.73) (0.25)

Dividend

Metric BABA MELI Internet Retail median
Dividend yield 0.96% — 1.79%
Payout ratio 0.25 — 0.25

Size

Metric BABA MELI Internet Retail median
Market cap 276.46b 94.14b 413.81m

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