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BABA vs. MELI: Alibaba vs. MercadoLibre Stock Comparison

This page compares Alibaba (BABA) with MercadoLibre (MELI) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

Performance

Cumulative Growth

BABA
MELI
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Alibaba (BABA) vs. MercadoLibre (MELI): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Alibaba (BABA) and MercadoLibre (MELI). Returns over one year are annualized.

Performance at a Glance

Performance metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
1-Year Return-2.37%-32.89%

Risk

Drawdown

BABA
MELI
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Alibaba (BABA) vs. MercadoLibre (MELI): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

MercadoLibre (MELI) has an aggressive beta of 1.36, indicating higher sensitivity to broad-market moves, while Alibaba (BABA) is defensive at 0.49 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Alibaba (BABA) is heavily traded at around 11.33M shares per day, whereas MercadoLibre (MELI) sees a more moderate 547.24K — larger orders in the latter may require more patience and tighter control over order sizing.

Risk at a Glance

Risk metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
1-Year Volatility43.89%39.56%
Beta0.491.36
3-Month Avg. Volume11.33M547.24K

Company Profile

Alibaba (BABA) and MercadoLibre (MELI) are both classified in the Broadline Retail sub-industry within the broader Broadline Retail industry, placing them in the closest GICS peer bucket.

MercadoLibre (MELI) trades as ordinary local shares, while Alibaba (BABA) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Alibaba (BABA) and MercadoLibre (MELI)
Profile ItemBABAMELI
NameAlibaba Group Holding Limited SP ADRMercadoLibre, Inc.
Country/RegionChinaUruguay
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & RetailConsumer Discretionary Distribution & Retail
GICS IndustryBroadline RetailBroadline Retail
GICS Sub-IndustryBroadline RetailBroadline Retail
Market Capitalization270.67 billion USD80.59 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateSeptember 19, 2014August 10, 2007
Security TypeADRCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Alibaba (BABA) at 17.36 is near its industry’s usual P/E ratio, while MercadoLibre (MELI) at 42.01 sits in the richer quartile — MELI needs stronger growth or earnings quality to justify the premium.

BABA

Consumer Discretionary Distribution & Retail industry group

17.36

Max
54.29
Q3
31.64
Median
20.61
BABA
17.36
Q1
12.78
Min
1.13

MELI

Consumer Discretionary Distribution & Retail industry group

42.01

Max
54.29
MELI
42.01
Q3
31.64
Median
20.61
Q1
12.78
Min
1.13
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/E ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Price-to-Sales Ratio (TTM)

Alibaba (BABA) at 0.26 looks cheap on sales in the lower P/S ratio quartile, while MercadoLibre (MELI) at 2.53 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

BABA

Consumer Discretionary Distribution & Retail industry group

0.26

Max
3.65
Q3
1.78
Median
0.73
Q1
0.28
BABA
0.26
Min
0.03

MELI

Consumer Discretionary Distribution & Retail industry group

2.53

Max
3.65
MELI
2.53
Q3
1.78
Median
0.73
Q1
0.28
Min
0.03
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/S ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Price-to-Book Ratio (MRQ)

Alibaba (BABA) at 1.67 is valued about in line with its industry on P/B ratio, while MercadoLibre (MELI) at 11.07 carries an above-peer premium to book — MELI is pricier on assets.

BABA

Consumer Discretionary Distribution & Retail industry group

1.67

Max
11.07
Q3
5.11
Median
2.24
BABA
1.67
Q1
1.05
Min
-3.64

MELI

Consumer Discretionary Distribution & Retail industry group

11.07

MELI
11.07
Max
11.07
Q3
5.11
Median
2.24
Q1
1.05
Min
-3.64
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/B ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Valuation at a Glance

Valuation metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
Price-to-Earnings Ratio (TTM)17.3642.01
Price-to-Sales Ratio (TTM)0.262.53
Price-to-Book Ratio (MRQ)1.6711.07
Free Cash Flow Yield-16.28%-5.09%

Profitability

Return on Equity (TTM)

Both Alibaba (BABA) at 9.22% and MercadoLibre (MELI) at 31.26% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

BABA

Consumer Discretionary Distribution & Retail industry group

9.22%

Max
63.82%
Q3
31.67%
Median
12.96%
BABA
9.22%
Q1
4.89%
Min
-29.94%

MELI

Consumer Discretionary Distribution & Retail industry group

31.26%

Max
63.82%
Q3
31.67%
MELI
31.26%
Median
12.96%
Q1
4.89%
Min
-29.94%
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their ROE against the Consumer Discretionary Distribution & Retail industry group benchmark.

Net Profit Margin (TTM)

Alibaba (BABA) at 10.12% retains a top-quartile share of revenue as profit, ahead of MercadoLibre (MELI) at 6.04%, which keeps about the industry-typical share.

BABA

Consumer Discretionary Distribution & Retail industry group

10.12%

Max
20.45%
BABA
10.12%
Q3
8.75%
Median
3.25%
Q1
0.49%
Min
-11.15%

MELI

Consumer Discretionary Distribution & Retail industry group

6.04%

Max
20.45%
Q3
8.75%
MELI
6.04%
Median
3.25%
Q1
0.49%
Min
-11.15%
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their net margin against the Consumer Discretionary Distribution & Retail industry group benchmark.

Operating Profit Margin (TTM)

MercadoLibre (MELI) at 6.91% runs core operations around its industry’s norm, while Alibaba (BABA) at 1.02% operates in the bottom quartile.

BABA

Consumer Discretionary Distribution & Retail industry group

1.02%

Max
23.15%
Q3
11.08%
Median
4.61%
Q1
1.68%
BABA
1.02%
Min
-8.71%

MELI

Consumer Discretionary Distribution & Retail industry group

6.91%

Max
23.15%
Q3
11.08%
MELI
6.91%
Median
4.61%
Q1
1.68%
Min
-8.71%
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their operating margin against the Consumer Discretionary Distribution & Retail industry group benchmark.

Profitability at a Glance

Profitability metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
Return on Equity (TTM)9.22%31.26%
Return on Assets (TTM)2.12%5.11%
Net Profit Margin (TTM)10.12%6.04%
Operating Profit Margin (TTM)1.02%6.91%
Gross Profit Margin (TTM)39.81%49.47%

Growth

Revenue Growth

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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
1-Year Revenue Growth2.74%39.06%
3-Year Revenue CAGR5.62%38.91%

EPS Growth

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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
1-Year EPS Growth-17.91%4.54%
3-Year EPS CAGR17.05%60.50%

Financial Strength

Current Ratio (MRQ)

Both Alibaba (BABA) at 1.28 and MercadoLibre (MELI) at 1.16 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

BABA

Consumer Discretionary Distribution & Retail industry group

1.28

Max
2.97
Q3
1.87
Median
1.38
BABA
1.28
Q1
1.03
Min
0.46

MELI

Consumer Discretionary Distribution & Retail industry group

1.16

Max
2.97
Q3
1.87
Median
1.38
MELI
1.16
Q1
1.03
Min
0.46
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their current ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Debt-to-Equity Ratio (MRQ)

Alibaba (BABA) at 0.25 keeps leverage in the lower industry quartile, while MercadoLibre (MELI) at 1.70 runs a more typical debt-to-equity mix.

BABA

Consumer Discretionary Distribution & Retail industry group

0.25

Max
3.27
Q3
1.82
Median
1.09
Q1
0.67
BABA
0.25
Min
0.01

MELI

Consumer Discretionary Distribution & Retail industry group

1.70

Max
3.27
Q3
1.82
MELI
1.70
Median
1.09
Q1
0.67
Min
0.01
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their debt-to-equity ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Financial Strength at a Glance

Financial strength metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
Current Ratio (MRQ)1.281.16
Debt-to-Equity Ratio (MRQ)0.251.70
Net Debt / EBITDA-0.321.70

Dividends

Dividend Yield (TTM)

MercadoLibre (MELI) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Alibaba (BABA) reports a yield of 0.93%, ranking against industry peers normally.

BABA

Consumer Discretionary Distribution & Retail industry group

0.93%

Max
6.62%
Q3
2.66%
BABA
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

MELI

Consumer Discretionary Distribution & Retail industry group

0.00%

Max
6.62%
Q3
2.66%
MELI
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their dividend yield against the Consumer Discretionary Distribution & Retail industry group benchmark.

Dividend Payout Ratio (TTM)

MercadoLibre (MELI) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Alibaba (BABA) reports a payout of 17.12%, ranking against industry peers normally.

BABA

Consumer Discretionary Distribution & Retail industry group

17.12%

Max
78.51%
Q3
33.46%
BABA
17.12%
Median
0.00%
Q1
0.00%
Min
0.00%

MELI

Consumer Discretionary Distribution & Retail industry group

0.00%

Max
78.51%
Q3
33.46%
MELI
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their payout ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Dividends at a Glance

Dividend metrics for Alibaba (BABA) and MercadoLibre (MELI)
MetricBABAMELI
Dividend Yield (TTM)0.93%0.00%
Dividend Payout Ratio (TTM)17.12%0.00%