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
Trailing Returns
Performance at a Glance
| Metric | BABA | MELI |
|---|---|---|
| 1-Year Return | -2.37% | -32.89% |
Risk
Drawdown
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
| Metric | BABA | MELI |
|---|---|---|
| 1-Year Volatility | 43.89% | 39.56% |
| Beta | 0.49 | 1.36 |
| 3-Month Avg. Volume | 11.33M | 547.24K |
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.
| Profile Item | BABA | MELI |
|---|---|---|
| Name | Alibaba Group Holding Limited SP ADR | MercadoLibre, Inc. |
| Country/Region | China | Uruguay |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail | Consumer Discretionary Distribution & Retail |
| GICS Industry | Broadline Retail | Broadline Retail |
| GICS Sub-Industry | Broadline Retail | Broadline Retail |
| Market Capitalization | 270.67 billion USD | 80.59 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 19, 2014 | August 10, 2007 |
| Security Type | ADR | Common 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
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
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
Valuation at a Glance
| Metric | BABA | MELI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 17.36 | 42.01 |
| Price-to-Sales Ratio (TTM) | 0.26 | 2.53 |
| Price-to-Book Ratio (MRQ) | 1.67 | 11.07 |
| 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%
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%
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%
Profitability at a Glance
| Metric | BABA | MELI |
|---|---|---|
| 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
Revenue Growth at a Glance
| Metric | BABA | MELI |
|---|---|---|
| 1-Year Revenue Growth | 2.74% | 39.06% |
| 3-Year Revenue CAGR | 5.62% | 38.91% |
EPS Growth
EPS Growth at a Glance
| Metric | BABA | MELI |
|---|---|---|
| 1-Year EPS Growth | -17.91% | 4.54% |
| 3-Year EPS CAGR | 17.05% | 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
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
Financial Strength at a Glance
| Metric | BABA | MELI |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 1.16 |
| Debt-to-Equity Ratio (MRQ) | 0.25 | 1.70 |
| Net Debt / EBITDA | -0.32 | 1.70 |
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%
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%
Dividends at a Glance
| Metric | BABA | MELI |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 0.00% |
| Dividend Payout Ratio (TTM) | 17.12% | 0.00% |