Head-To-Head Contrast: Boohoo Group (OTCMKTS:BHOOY) versus MercadoLibre (NASDAQ:MELI)

MercadoLibre (NASDAQ:MELI) and Boohoo Group (OTCMKTS:BHOOY) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

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

Risk & Volatility

MercadoLibre has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Boohoo Group has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for MercadoLibre and Boohoo Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MercadoLibre	0	6	11	1	2.72
Boohoo Group	0	0	0	0	0.00

MercadoLibre currently has a consensus price target of $2,258.67, indicating a potential upside of 21.60%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts clearly believe MercadoLibre is more favorable than Boohoo Group.

Valuation & Earnings

This table compares MercadoLibre and Boohoo Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MercadoLibre	$28.89 billion	3.26	$2.00 billion	$37.89	49.02
Boohoo Group	$1.23 billion	0.30	-$144.76 million	N/A	N/A

MercadoLibre has higher revenue and earnings than Boohoo Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MercadoLibre	6.04%	29.58%	4.82%
Boohoo Group	N/A	N/A	N/A

Summary

MercadoLibre beats Boohoo Group on 13 of the 13 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 Boohoo Group

boohoo group plc, through its subsidiaries, operates as an online clothing retailer in the United Kingdom, rest of Europe, the United States, and internationally. The company designs, sources, markets, and sells clothing, shoes, accessories, and beauty products for 16-to-45-year age customers. It provides its products under the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse, Dorothy Perkins, Wallis, Burton, and Debenhams brands. The company was founded in 2006 and is headquartered in Manchester, the United Kingdom.