Financial Contrast: MercadoLibre (NASDAQ:MELI) versus Seven and I (OTCMKTS:SVNDY)
by Mitch Edgeman · The Markets DailyMercadoLibre (NASDAQ:MELI – Get Free Report) and Seven and I (OTCMKTS:SVNDY – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares MercadoLibre and Seven and I”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MercadoLibre | $28.89 billion | 2.65 | $2.00 billion | $37.28 | 40.50 |
| Seven and I | $69.63 billion | 0.46 | $1.96 billion | $0.80 | 17.21 |
MercadoLibre has higher earnings, but lower revenue 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.
Insider & Institutional Ownership
87.6% of MercadoLibre shares are owned by institutional investors. Comparatively, 0.0% of Seven and I shares are owned by institutional investors. 0.3% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares MercadoLibre and Seven and I’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MercadoLibre | 4.91% | 25.93% | 4.02% |
| Seven and I | 2.89% | 8.20% | 3.23% |
Risk and Volatility
MercadoLibre has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for MercadoLibre and Seven and I, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MercadoLibre | 0 | 5 | 13 | 1 | 2.79 |
| Seven and I | 0 | 2 | 0 | 0 | 2.00 |
MercadoLibre presently has a consensus target price of $2,198.75, indicating a potential upside of 45.61%. Given MercadoLibre’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MercadoLibre is more favorable than Seven and I.
Summary
MercadoLibre beats Seven and I on 14 of the 15 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 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.