BABA vs. MELI: Alibaba vs. MercadoLibre Stock Comparison

July 23, 2026

How do Alibaba (BABA) and MercadoLibre (MELI) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

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 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	282.76 billion USD	92.40 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	September 19, 2014	August 10, 2007
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

BABA

MELI

GSPC

Alibaba (BABA) vs. MercadoLibre (MELI), with S&P 500 (GSPC) for reference: 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.

Calendar-Year Returns

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Calendar-year total returns for Alibaba (BABA) and MercadoLibre (MELI). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Total Return (1Y)	-1.01%	-23.39%
Total Return (3Y, Annualized)	10.80%	14.29%
Total Return (5Y, Annualized)	-9.90%	3.29%

Risk Profile

Drawdown History

BABA

MELI

GSPC

Alibaba (BABA) vs. MercadoLibre (MELI), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Alibaba (BABA) and MercadoLibre (MELI). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

MercadoLibre (MELI) has an aggressive beta of 1.34, indicating higher sensitivity to broad-market moves, while Alibaba (BABA) is defensive at 0.51 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Alibaba (BABA) is heavily traded at around 12.53M shares per day, whereas MercadoLibre (MELI) sees a more moderate 532.29K — larger orders in the latter may require more patience and tighter control over order sizing.

Risk profile metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Volatility (1Y, Annualized)	44.89%	39.80%
Beta (5Y)	0.51	1.34
Max Drawdown (5Y)	-70.50%	-68.64%
Avg. Volume (3M)	12.53M	532.29K

Risk-Adjusted Performance

Risk-Return Positioning

BABA and MELI are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Sharpe Ratio (1Y)	-0.11	-0.69
Sortino Ratio (1Y)	-0.19	-0.89

Profitability

ROE (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: 31.99%
Median: 14.10%
BABA: 9.22%
Q1: 5.79%
Min: -29.94%

MELI

Consumer Discretionary Distribution & Retail industry group

31.26%

Max: 63.82%
Q3: 31.99%
MELI: 31.26%
Median: 14.10%
Q1: 5.79%
Min: -29.94%

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their ROE against the Consumer Discretionary Distribution & Retail industry group benchmark.

Net 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: 8.98%
Median: 3.75%
Q1: 0.80%
Min: -11.15%

MELI

Consumer Discretionary Distribution & Retail industry group

6.04%

Max: 20.45%
Q3: 8.98%
MELI: 6.04%
Median: 3.75%
Q1: 0.80%
Min: -11.15%

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their net margin against the Consumer Discretionary Distribution & Retail industry group benchmark.

Operating 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: 11.13%
Median: 4.82%
Q1: 1.65%
BABA: 1.02%
Min: -8.71%

MELI

Consumer Discretionary Distribution & Retail industry group

6.91%

Max: 23.15%
Q3: 11.13%
MELI: 6.91%
Median: 4.82%
Q1: 1.65%
Min: -8.71%

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their operating margin against the Consumer Discretionary Distribution & Retail industry group benchmark.

Profitability Metrics

Profitability metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
ROE (TTM)	9.22%	31.26%
ROA (TTM)	2.12%	5.11%
Net Margin (TTM)	10.12%	6.04%
Operating Margin (TTM)	1.02%	6.91%
Gross Margin (TTM)	39.81%	49.47%

Growth

Revenue Growth

MercadoLibre (MELI) at 39.06% clears its industry range for revenue growth, far stronger top-line momentum than Alibaba (BABA) at 2.74%, which is closer to a typical peer reading.

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

EPS Growth

MercadoLibre (MELI) at 4.54% is around its peer norm for EPS growth, while Alibaba (BABA) at -17.91% drops into the bottom quartile, signaling weaker earnings momentum.

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

Growth Metrics

Growth metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Revenue Growth (YoY)	2.74%	39.06%
Revenue Growth (3Y CAGR)	5.62%	38.91%
EPS Growth (YoY)	-17.91%	4.54%
EPS Growth (3Y 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

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their current ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Debt / Equity (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: 3.37
Q3: 1.84
Median: 1.10
Q1: 0.72
BABA: 0.25
Min: 0.01

MELI

Consumer Discretionary Distribution & Retail industry group

1.70

Max: 3.37
Q3: 1.84
MELI: 1.70
Median: 1.10
Q1: 0.72
Min: 0.01

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their debt-to-equity ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Current Ratio (MRQ)	1.28	1.16
Debt / Equity (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 6.02%, ranking against industry peers normally.

BABA

Consumer Discretionary Distribution & Retail industry group

6.02%

BABA: 6.02%
Max: 5.11%
Q3: 2.34%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MELI

Consumer Discretionary Distribution & Retail industry group

0.00%

Max: 5.11%
Q3: 2.34%
MELI: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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: 33.07%
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: 33.07%
MELI: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their payout ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Dividend Metrics

Dividend metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
Dividend Yield (TTM)	6.02%	0.00%
Dividend Payout Ratio (TTM)	17.12%	0.00%

Valuation

P/E Ratio (TTM)

Alibaba (BABA) at 18.58 is near its industry’s usual P/E ratio, while MercadoLibre (MELI) at 48.31 sits in the richer quartile — MELI needs stronger growth or earnings quality to justify the premium.

BABA

Consumer Discretionary Distribution & Retail industry group

18.58

Max: 55.02
Q3: 32.16
Median: 20.42
BABA: 18.58
Q1: 12.25
Min: 1.08

MELI

Consumer Discretionary Distribution & Retail industry group

48.31

Max: 55.02
MELI: 48.31
Q3: 32.16
Median: 20.42
Q1: 12.25
Min: 1.08

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/E ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

P/S Ratio (TTM)

Alibaba (BABA) at 0.28 looks cheap on sales in the lower P/S ratio quartile, while MercadoLibre (MELI) at 2.91 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

BABA

Consumer Discretionary Distribution & Retail industry group

0.28

Max: 4.00
Q3: 1.91
Median: 0.78
Q1: 0.31
BABA: 0.28
Min: 0.03

MELI

Consumer Discretionary Distribution & Retail industry group

2.91

Max: 4.00
MELI: 2.91
Q3: 1.91
Median: 0.78
Q1: 0.31
Min: 0.03

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/S ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

P/B Ratio (MRQ)

Alibaba (BABA) at 1.75 is valued about in line with its industry on P/B ratio, while MercadoLibre (MELI) at 12.69 carries an above-peer premium to book — MELI is pricier on assets.

BABA

Consumer Discretionary Distribution & Retail industry group

1.75

Max: 12.69
Q3: 6.02
Median: 2.27
BABA: 1.75
Q1: 1.18
Min: -4.00

MELI

Consumer Discretionary Distribution & Retail industry group

12.69

MELI: 12.69
Max: 12.69
Q3: 6.02
Median: 2.27
Q1: 1.18
Min: -4.00

Alibaba (BABA) vs. MercadoLibre (MELI): A comparison of their P/B ratio against the Consumer Discretionary Distribution & Retail industry group benchmark.

Valuation Metrics

Valuation metrics for Alibaba (BABA) and MercadoLibre (MELI)
Metric	BABA	MELI
P/E Ratio (TTM)	18.58	48.31
P/S Ratio (TTM)	0.28	2.91
P/B Ratio (MRQ)	1.75	12.69
Free Cash Flow Yield (TTM)	-15.59%	-4.44%