MercadoLibre (NASDAQ:MELI – Get Free Report) and OptimizeRx (NASDAQ:OPRX – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Valuation and Earnings
This table compares MercadoLibre and OptimizeRx”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
MercadoLibre | $14.47 billion | 6.64 | $987.00 million | $28.34 | 66.89 |
OptimizeRx | $71.52 million | 1.41 | -$17.57 million | ($1.33) | -4.12 |
MercadoLibre has higher revenue and earnings than OptimizeRx. OptimizeRx is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
MercadoLibre | 0 | 2 | 13 | 2 | 3.00 |
OptimizeRx | 0 | 3 | 6 | 0 | 2.67 |
MercadoLibre currently has a consensus price target of $2,241.00, suggesting a potential upside of 18.23%. OptimizeRx has a consensus price target of $9.06, suggesting a potential upside of 65.37%. Given OptimizeRx’s higher probable upside, analysts clearly believe OptimizeRx is more favorable than MercadoLibre.
Profitability
This table compares MercadoLibre and OptimizeRx’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
MercadoLibre | 7.57% | 40.71% | 7.24% |
OptimizeRx | -27.41% | -4.92% | -3.41% |
Insider and Institutional Ownership
87.6% of MercadoLibre shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 0.1% of MercadoLibre shares are owned by insiders. Comparatively, 6.1% of OptimizeRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
MercadoLibre has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Summary
MercadoLibre beats OptimizeRx on 12 of the 14 factors compared between the two stocks.
About MercadoLibre
MercadoLibre, Inc. operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
About OptimizeRx
OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.
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