MercadoLibre (NASDAQ:MELI) versus Seven and I (OTCMKTS:SVNDY) Head-To-Head Comparison

Seven and I (OTCMKTS:SVNDY) and MercadoLibre (NASDAQ:MELI) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Seven and I has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Seven and I shares are held by institutional investors. Comparatively, 87.6% of MercadoLibre shares are held by institutional investors. 0.3% of MercadoLibre shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Seven and I and MercadoLibre”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$69.63 billion	0.42	$1.96 billion	$0.83	15.04
MercadoLibre	$28.89 billion	3.03	$2.00 billion	$36.77	46.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Seven and I	3.03%	7.87%	3.06%
MercadoLibre	5.30%	26.54%	4.19%

Analyst Ratings

This is a summary of current recommendations for Seven and I and MercadoLibre, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	2	0	0	2.00
MercadoLibre	0	6	12	0	2.67

MercadoLibre has a consensus target price of $2,283.12, suggesting a potential upside of 32.36%. Given MercadoLibre’s stronger consensus rating and higher possible upside, analysts plainly believe MercadoLibre is more favorable than Seven and I.

Summary

MercadoLibre beats Seven and I on 13 of the 14 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

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.