MercadoLibre vs Amazon.com Which Is More Favorable?

MercadoLibre and Amazon.com are two of the largest e-commerce companies in the world, with both companies experiencing significant growth in recent years. While Amazon.com dominates the U.S. market, MercadoLibre is a major player in Latin America. Investors are often torn between choosing between the two stocks, as both companies have strong financials and promising futures. However, MercadoLibre's unique positioning in the fast-growing Latin American market sets it apart from Amazon.com, making it an enticing investment option for those looking to diversify their portfolio.

MercadoLibre or Amazon.com?

When comparing MercadoLibre and Amazon.com, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between MercadoLibre and Amazon.com.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. MercadoLibre has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MercadoLibre reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with MercadoLibre P/E ratio at 69.19 and Amazon.com's P/E ratio at 43.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MercadoLibre P/B ratio is 24.84 while Amazon.com's P/B ratio is 8.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MercadoLibre has seen a 5-year revenue growth of 7.91%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MercadoLibre's ROE at 40.71% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1882.30 for MercadoLibre and $205.59 for Amazon.com. Over the past year, MercadoLibre's prices ranged from $1324.99 to $2161.73, with a yearly change of 63.15%. Amazon.com's prices fluctuated between $139.52 and $212.25, with a yearly change of 52.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.