Reviewing OLO (NYSE:OLO) & MercadoLibre (NASDAQ:MELI)

OLO (NYSE:OLO) and MercadoLibre (NASDAQ:MELI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Valuation and Earnings

This table compares OLO and MercadoLibre’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OLO $98.42 million 61.80 $3.06 million N/A N/A
MercadoLibre $3.97 billion 17.23 -$710,000.00 ($0.08) -17,166.88

OLO has higher earnings, but lower revenue than MercadoLibre.

Profitability

This table compares OLO and MercadoLibre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OLO N/A N/A N/A
MercadoLibre -0.29% 2.75% 0.62%

Analyst Ratings

This is a summary of current ratings and target prices for OLO and MercadoLibre, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OLO 0 2 5 0 2.71
MercadoLibre 0 2 15 0 2.88

OLO presently has a consensus target price of $32.00, suggesting a potential downside of 22.39%. MercadoLibre has a consensus target price of $1,823.76, suggesting a potential upside of 32.80%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than OLO.

Insider & Institutional Ownership

48.8% of OLO shares are owned by institutional investors. Comparatively, 78.2% of MercadoLibre shares are owned by institutional investors. 0.4% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

MercadoLibre beats OLO on 8 of the 11 factors compared between the two stocks.

OLO Company Profile

Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. The company's platform enables on-demand commerce operations, which cover digital ordering and delivery through online and mobile ordering modules. Its modules include Ordering, an on-demand commerce solution that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; Dispatch, a fulfillment solution, which enables restaurants to offer, manage, and expand direct delivery; and Rails, an aggregator and channel management solution, which allows restaurants to control and syndicate menu, pricing, location data, and availability. The company was founded in 2005 and is headquartered in New York, New York.

MercadoLibre Company Profile

MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech, 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 via their websites and mobile apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; and Mercado Credito that extends loans to certain merchants and consumers. In addition, it provides 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. Further, the company provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services. Additionally, it offers Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet. The company also provides Mercado Shops, an online storefronts solution, that enables users to set-up, manage, and promote their own Webstores. The company was incorporated in 1999 and is headquartered in Buenos Aires, Argentina.

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