MercadoLibre, Inc. (MELI) vs PDD Holdings Inc. Sponsored ADR (PDD)

MercadoLibre, Inc. and PDD Holdings Inc. Sponsored ADR are both Internet Retail companies. PDD Holdings Inc. Sponsored ADR is the larger, with a market value of $110.9B against $89.7B — 1.2× the size. PDD Holdings Inc. Sponsored ADR trades at the lower P/E: 8.1× against 47.7×. MercadoLibre, Inc. grew revenue faster over the last twelve months: 46.0% against 17.3%. PDD Holdings Inc. Sponsored ADR has the higher net margin (20.4% vs 5.30%) and the higher return on invested capital (0.00% vs 0.00%). Across the 20 metrics below, PDD Holdings Inc. Sponsored ADR leads on 15 and MercadoLibre, Inc. on 5.

Valuation

Metric MELI PDD Internet Retail median
P/E 47.66 8.09 22.73
P/S 2.53 1.65 0.64
P/B 11.34 1.65 1.65
Price to free cash flow 7.17 6.89 14.11
EV/EBITDA 20.72 2.21 15.68
EV/Sales 2.29 0.48 0.76
Earnings yield 2.10% 12.36% (0.11%)
Free cash flow yield 13.96% 14.52% 0.00%

Profitability

Metric MELI PDD Internet Retail median
Gross margin 42.68% 56.33% 43.51%
Operating margin 8.26% 21.85% 0.08%
Net margin 5.30% 20.44% 0.56%
Free cash flow margin 35.27% 24.71% 0.00%
Return on equity 27.50% 23.16% 0.00%
Return on assets 4.42% 15.25% 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric MELI PDD Internet Retail median
Revenue growth (TTM) 46.01% 17.30% 10.60%
EPS growth (last fiscal year) 4.54% (7.88%) —
Revenue growth, 5-year CAGR 48.70% 46.61% 10.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MELI PDD Internet Retail median
Debt to equity 1.36 0.00 0.13
Current ratio 1.12 2.62 1.49
Net debt to EBITDA (1.73) (5.16) (0.25)

Dividend

Metric MELI PDD Internet Retail median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric MELI PDD Internet Retail median
Market cap 89.71b 110.90b 443.85m

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