MercadoLibre, Inc. (MELI) vs Wayfair Inc. (W)

MercadoLibre, Inc. and Wayfair Inc. are both Internet Retail companies. MercadoLibre, Inc. is the larger, with a market value of $92.1B against $14.4B — 6.4× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; MercadoLibre, Inc. trades at 50.0×. MercadoLibre, Inc. grew revenue faster over the last twelve months: 46.0% against 7.46%. MercadoLibre, Inc. has the higher net margin (5.30% vs −2.49%) and the higher return on invested capital (0.00% vs 0.00%). Across the 18 metrics below, MercadoLibre, Inc. leads on 14 and Wayfair Inc. on 4.

Valuation

Metric MELI W Internet Retail median
P/E 50.02 n/m 24.49
P/S 2.65 1.07 0.69
P/B 11.90 n/m 1.69
Price to free cash flow 7.52 24.61 15.07
EV/EBITDA 21.84 30.97 18.67
EV/Sales 2.42 1.20 0.75
Earnings yield 2.00% (2.35%) (0.16%)
Free cash flow yield 13.30% 4.06% 0.00%

Profitability

Metric MELI W Internet Retail median
Gross margin 42.68% 30.05% 43.51%
Operating margin 8.26% 1.67% 0.08%
Net margin 5.30% (2.49%) 0.56%
Free cash flow margin 35.27% 4.36% 0.00%
Return on equity 27.50% 11.66% 0.00%
Return on assets 4.42% (10.26%) 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric MELI W Internet Retail median
Revenue growth (TTM) 46.01% 7.46% 10.80%
EPS growth (last fiscal year) 4.54% 39.15% 14.02%
Revenue growth, 5-year CAGR 48.70% (2.51%) 10.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MELI W Internet Retail median
Debt to equity 1.36 (1.00) 0.10
Current ratio 1.12 0.74 1.48
Net debt to EBITDA (1.73) 5.11 (0.25)

Dividend

Metric MELI W Internet Retail median
Dividend yield — — 1.78%
Payout ratio — — 0.25

Size

Metric MELI W Internet Retail median
Market cap 92.10b 14.44b 410.52m

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