Reviewing MercadoLibre (NASDAQ:MELI) and ARTISTdirect (OTCMKTS:ARTD)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARTISTdirect	N/A	N/A	N/A	N/A	N/A
MercadoLibre	$26.19 billion	4.08	$1.91 billion	$40.98	51.45

MercadoLibre has higher revenue and earnings than ARTISTdirect.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ARTISTdirect	N/A	N/A	N/A
MercadoLibre	7.93%	41.35%	7.26%

Insider & 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ARTISTdirect and MercadoLibre, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARTISTdirect	0	0	0	0	0.00
MercadoLibre	0	2	13	1	2.94

MercadoLibre has a consensus target price of $2,861.25, indicating a potential upside of 35.69%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre is more favorable than ARTISTdirect.

Summary

MercadoLibre beats ARTISTdirect on 10 of the 10 factors compared between the two stocks.

About ARTISTdirect

ARTISTdirect, Inc. operates an online platform that provides music and recorded labels. It offers multi-media content, music news and information, online fan communities, music related commerce, and digital music services. The company also provides iMusic record labels of rock and urban music. ARTISTdirect, Inc. was founded in 1996 and is based in Santa Monica, California.

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.