Reviewing DoorDash (NASDAQ:DASH) and MercadoLibre (NASDAQ:MELI)

MercadoLibre (NASDAQ:MELI) and DoorDash (NASDAQ:DASH) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Institutional & Insider Ownership

87.6% of MercadoLibre shares are held by institutional investors. Comparatively, 90.6% of DoorDash shares are held by institutional investors. 0.1% of MercadoLibre shares are held by company insiders. Comparatively, 7.9% of DoorDash shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MercadoLibre	7.17%	39.46%	6.64%
DoorDash	-4.61%	-6.28%	-4.01%

Risk and Volatility

MercadoLibre has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for MercadoLibre and DoorDash, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MercadoLibre	0	1	11	0	2.92
DoorDash	0	8	16	0	2.67

MercadoLibre currently has a consensus price target of $1,881.92, indicating a potential upside of 17.62%. DoorDash has a consensus price target of $134.79, indicating a potential upside of 18.36%. Given DoorDash’s higher possible upside, analysts clearly believe DoorDash is more favorable than MercadoLibre.

Valuation and Earnings

This table compares MercadoLibre and DoorDash’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MercadoLibre	$14.47 billion	5.61	$987.00 million	$22.35	71.59
DoorDash	$8.64 billion	5.39	-$558.00 million	($1.08)	-105.44

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

Summary

MercadoLibre beats DoorDash on 9 of the 14 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 DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.