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AMZN vs. MELI: A Head-to-Head Stock Comparison

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Here’s a clear look at AMZN and MELI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMZN’s market capitalization of 2,371.81 billion USD is substantially larger than MELI’s 127.46 billion USD, indicating a significant difference in their market valuations.

With betas of 1.33 for AMZN and 1.51 for MELI, both stocks show similar sensitivity to overall market movements.

SymbolAMZNMELI
Company NameAmazon.com, Inc.MercadoLibre, Inc.
CountryUSUY
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailSpecialty Retail
CEOAndrew R. JassyMarcos Eduardo Galperín
Price223.41 USD2,514.05 USD
Market Cap2,371.81 billion USD127.46 billion USD
Beta1.331.51
ExchangeNASDAQNASDAQ
IPO DateMay 15, 1997August 10, 2007
ADRNoNo

Historical Performance

This chart compares the performance of AMZN and MELI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMZN vs. MELI: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMZN

24.26%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

MELI

48.46%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

In the upper quartile for the Specialty Retail industry, MELI’s Return on Equity of 48.46% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AMZN vs. MELI: A comparison of their ROE against the Specialty Retail industry benchmark.

Return on Invested Capital

AMZN

13.10%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.

MELI

19.90%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

In the upper quartile for the Specialty Retail industry, MELI’s Return on Invested Capital of 19.90% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMZN vs. MELI: A comparison of their ROIC against the Specialty Retail industry benchmark.

Net Profit Margin

AMZN

10.14%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

MELI

9.47%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 9.47% places MELI in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

AMZN vs. MELI: A comparison of their Net Profit Margin against the Specialty Retail industry benchmark.

Operating Profit Margin

AMZN

11.02%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

MELI

13.17%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

An Operating Profit Margin of 13.17% places MELI in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMZN vs. MELI: A comparison of their Operating Margin against the Specialty Retail industry benchmark.

Profitability at a Glance

SymbolAMZNMELI
Return on Equity (TTM)24.26%48.46%
Return on Assets (TTM)10.25%7.45%
Return on Invested Capital (TTM)13.10%19.90%
Net Profit Margin (TTM)10.14%9.47%
Operating Profit Margin (TTM)11.02%13.17%
Gross Profit Margin (TTM)49.16%47.44%

Financial Strength

Current Ratio

AMZN

1.05

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

MELI

1.20

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

MELI’s Current Ratio of 1.20 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

AMZN vs. MELI: A comparison of their Current Ratio against the Specialty Retail industry benchmark.

Debt-to-Equity Ratio

AMZN

0.44

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MELI

1.54

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

MELI’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 1.54. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AMZN vs. MELI: A comparison of their D/E Ratio against the Specialty Retail industry benchmark.

Interest Coverage Ratio

AMZN

31.13

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

MELI

32.57

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

MELI’s Interest Coverage Ratio of 32.57 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMZN vs. MELI: A comparison of their Interest Coverage against the Specialty Retail industry benchmark.

Financial Strength at a Glance

SymbolAMZNMELI
Current Ratio (TTM)1.051.20
Quick Ratio (TTM)0.841.18
Debt-to-Equity Ratio (TTM)0.441.54
Debt-to-Asset Ratio (TTM)0.210.28
Net Debt-to-EBITDA Ratio (TTM)0.501.43
Interest Coverage Ratio (TTM)31.1332.57

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMZN and MELI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMZN vs. MELI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMZN vs. MELI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMZN vs. MELI: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMZN

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MELI

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

MELI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AMZN vs. MELI: A comparison of their Dividend Yield against the Specialty Retail industry benchmark.

Dividend Payout Ratio

AMZN

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MELI

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

MELI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AMZN vs. MELI: A comparison of their Payout Ratio against the Specialty Retail industry benchmark.

Dividend at a Glance

SymbolAMZNMELI
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

AMZN

35.92

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MELI

61.84

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

A P/E Ratio of 61.84 places MELI in the upper quartile for the Specialty Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AMZN vs. MELI: A comparison of their P/E Ratio against the Specialty Retail industry benchmark.

Forward P/E to Growth Ratio

AMZN

1.72

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

MELI

1.73

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

MELI’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AMZN vs. MELI: A comparison of their Forward PEG Ratio against the Specialty Retail industry benchmark.

Price-to-Sales Ratio

AMZN

3.65

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

MELI

5.86

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

With a P/S Ratio of 5.86, MELI trades at a valuation that eclipses even the highest in the Specialty Retail industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AMZN vs. MELI: A comparison of their P/S Ratio against the Specialty Retail industry benchmark.

Price-to-Book Ratio

AMZN

7.74

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MELI

25.47

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

At 25.47, MELI’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AMZN vs. MELI: A comparison of their P/B Ratio against the Specialty Retail industry benchmark.

Valuation at a Glance

SymbolAMZNMELI
Price-to-Earnings Ratio (P/E, TTM)35.9261.84
Forward PEG Ratio (TTM)1.721.73
Price-to-Sales Ratio (P/S, TTM)3.655.86
Price-to-Book Ratio (P/B, TTM)7.7425.47
Price-to-Free Cash Flow Ratio (P/FCF, TTM)113.9716.83
EV-to-EBITDA (TTM)18.0739.78
EV-to-Sales (TTM)3.756.07