MercadoLibre (NASDAQ:MELI) & MJ (OTCMKTS:MJNE) Financial Comparison

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

Risk & Volatility

MercadoLibre has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, MJ has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MercadoLibre and MJ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MercadoLibre	0	1	11	0	2.92
MJ	0	0	0	0	N/A

MercadoLibre presently has a consensus target price of $1,881.92, suggesting a potential upside of 17.62%. Given MercadoLibre’s higher probable upside, equities analysts clearly believe MercadoLibre is more favorable than MJ.

Insider & Institutional Ownership

87.6% of MercadoLibre shares are held by institutional investors. 0.1% of MercadoLibre shares are held by insiders. Comparatively, 35.9% of MJ shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MercadoLibre and MJ’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%
MJ	N/A	-86.20%	-11.18%

Earnings and Valuation

This table compares MercadoLibre and MJ’s gross revenue, earnings per share 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
MJ	$360,000.00	0.91	-$5.38 million	N/A	N/A

MercadoLibre has higher revenue and earnings than MJ.

Summary

MercadoLibre beats MJ on 10 of the 11 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 MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.