PetMed Express (NASDAQ:PETS) vs. MercadoLibre (NASDAQ:MELI) Head to Head Contrast

PetMed Express (NASDAQ:PETS) and MercadoLibre (NASDAQ:MELI) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Valuation and Earnings

This table compares PetMed Express 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
PetMed Express	$247.01 million	0.21	-$7.46 million	$0.01	257.00
MercadoLibre	$24.10 billion	4.59	$1.91 billion	$40.49	53.84

MercadoLibre has higher revenue and earnings than PetMed Express. MercadoLibre is trading at a lower price-to-earnings ratio than PetMed Express, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PetMed Express has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PetMed Express and MercadoLibre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PetMed Express	2	1	0	0	1.33
MercadoLibre	0	2	15	1	2.94

PetMed Express presently has a consensus price target of $3.20, indicating a potential upside of 24.51%. MercadoLibre has a consensus price target of $2,822.78, indicating a potential upside of 29.49%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre is more favorable than PetMed Express.

Insider and Institutional Ownership

73.3% of PetMed Express shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 1.1% of PetMed Express shares are owned by insiders. Comparatively, 0.3% of MercadoLibre shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

PetMed Express pays an annual dividend of $0.90 per share and has a dividend yield of 35.0%. MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.0%. PetMed Express pays out 9,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MercadoLibre pays out 1.5% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PetMed Express	N/A	N/A	N/A
MercadoLibre	8.52%	43.06%	7.57%

Summary

MercadoLibre beats PetMed Express on 14 of the 17 factors compared between the two stocks.

About PetMed Express

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.

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.