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 $84.3B against $15.3B — 5.5× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; MercadoLibre, Inc. trades at 45.4×. 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 45.41 n/m 23.78
P/S 2.41 1.14 0.76
P/B 10.81 n/m 1.73
Price to free cash flow 6.83 26.22 14.90
EV/EBITDA 19.64 32.78 18.44
EV/Sales 2.17 1.27 0.81
Earnings yield 2.20% (2.20%) (0.52%)
Free cash flow yield 14.65% 3.81% (0.47%)

Profitability

Metric MELI W Internet Retail median
Gross margin 42.68% 30.05% 44.12%
Operating margin 8.26% 1.67% 0.76%
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% 10.60%
EPS growth (last fiscal year) 4.54% 39.15% 19.82%
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 1.52
Net debt to EBITDA (1.73) 5.11 (0.66)

Dividend

Metric MELI W Internet Retail median
Dividend yield — — 1.74%
Payout ratio — — 0.27

Size

Metric MELI W Internet Retail median
Market cap 84.27b 15.25b 528.20m

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