BBY vs. MELI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BBY and MELI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | BBY | MELI |
|---|---|---|
| Company Name | Best Buy Co., Inc. | MercadoLibre, Inc. |
| Country | United States | Uruguay |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Specialty Retail | Broadline Retail |
| Market Capitalization | 15.37 billion USD | 117.99 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | April 18, 1985 | August 10, 2007 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of BBY 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.
Historical Performance at a Glance
| Symbol | BBY | MELI |
|---|---|---|
| 5-Day Price Return | 7.67% | -0.32% |
| 13-Week Price Return | -0.87% | -7.08% |
| 26-Week Price Return | -15.37% | 15.63% |
| 52-Week Price Return | -10.43% | 22.37% |
| Month-to-Date Return | 11.79% | -1.96% |
| Year-to-Date Return | -15.23% | 36.86% |
| 10-Day Avg. Volume | 2.86M | 0.47M |
| 3-Month Avg. Volume | 3.95M | 0.38M |
| 3-Month Volatility | 37.47% | 26.22% |
| Beta | 1.26 | 1.51 |
Profitability
Return on Equity (TTM)
BBY
30.03%
Specialty Retail Industry
- Max
- 61.19%
- Q3
- 37.24%
- Median
- 18.81%
- Q1
- 8.92%
- Min
- -13.03%
BBY’s Return on Equity of 30.03% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
MELI
43.06%
Broadline Retail Industry
- Max
- 49.17%
- Q3
- 28.98%
- Median
- 19.22%
- Q1
- 10.86%
- Min
- -11.14%
In the upper quartile for the Broadline Retail industry, MELI’s Return on Equity of 43.06% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
BBY
2.13%
Specialty Retail Industry
- Max
- 21.28%
- Q3
- 10.68%
- Median
- 6.08%
- Q1
- 2.43%
- Min
- -4.54%
Falling into the lower quartile for the Specialty Retail industry, BBY’s Net Profit Margin of 2.13% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
MELI
8.52%
Broadline Retail Industry
- Max
- 19.78%
- Q3
- 11.90%
- Median
- 8.63%
- Q1
- 5.21%
- Min
- 0.82%
MELI’s Net Profit Margin of 8.52% is aligned with the median group of its peers in the Broadline Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
BBY
2.82%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 15.84%
- Median
- 9.34%
- Q1
- 3.83%
- Min
- -8.97%
BBY’s Operating Profit Margin of 2.82% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
MELI
12.30%
Broadline Retail Industry
- Max
- 27.23%
- Q3
- 15.96%
- Median
- 11.13%
- Q1
- 8.31%
- Min
- 1.77%
MELI’s Operating Profit Margin of 12.30% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | BBY | MELI |
|---|---|---|
| Return on Equity (TTM) | 30.03% | 43.06% |
| Return on Assets (TTM) | 5.74% | 7.57% |
| Net Profit Margin (TTM) | 2.13% | 8.52% |
| Operating Profit Margin (TTM) | 2.82% | 12.30% |
| Gross Profit Margin (TTM) | 22.61% | 45.87% |
Financial Strength
Current Ratio (MRQ)
BBY
1.02
Specialty Retail Industry
- Max
- 2.83
- Q3
- 1.89
- Median
- 1.39
- Q1
- 1.11
- Min
- 0.64
BBY’s Current Ratio of 1.02 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MELI
1.20
Broadline Retail Industry
- Max
- 3.54
- Q3
- 2.42
- Median
- 1.49
- Q1
- 1.22
- Min
- 0.67
MELI’s Current Ratio of 1.20 falls into the lower quartile for the Broadline Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
BBY
0.42
Specialty Retail Industry
- Max
- 3.02
- Q3
- 1.57
- Median
- 0.64
- Q1
- 0.20
- Min
- 0.00
BBY’s Debt-to-Equity Ratio of 0.42 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
1.28
Broadline Retail Industry
- Max
- 2.14
- Q3
- 1.34
- Median
- 0.63
- Q1
- 0.27
- Min
- 0.00
MELI’s Debt-to-Equity Ratio of 1.28 is typical for the Broadline Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
BBY
256.43
Specialty Retail Industry
- Max
- 48.12
- Q3
- 35.95
- Median
- 14.13
- Q1
- 3.61
- Min
- -36.00
With an Interest Coverage Ratio of 256.43, BBY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.
MELI
13.22
Broadline Retail Industry
- Max
- 37.34
- Q3
- 20.63
- Median
- 11.28
- Q1
- 4.22
- Min
- -19.29
MELI’s Interest Coverage Ratio of 13.22 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | BBY | MELI |
|---|---|---|
| Current Ratio (MRQ) | 1.02 | 1.20 |
| Quick Ratio (MRQ) | 0.32 | 1.18 |
| Debt-to-Equity Ratio (MRQ) | 0.42 | 1.28 |
| Interest Coverage Ratio (TTM) | 256.43 | 13.22 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
BBY
5.33%
Specialty Retail Industry
- Max
- 6.53%
- Q3
- 2.69%
- Median
- 1.08%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 5.33%, BBY offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
MELI
0.00%
Broadline Retail Industry
- Max
- 5.46%
- Q3
- 2.38%
- Median
- 0.43%
- 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.
Dividend Payout Ratio (TTM)
BBY
91.39%
Specialty Retail Industry
- Max
- 165.81%
- Q3
- 80.94%
- Median
- 31.61%
- Q1
- 0.00%
- Min
- 0.00%
BBY’s Dividend Payout Ratio of 91.39% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
MELI
0.00%
Broadline Retail Industry
- Max
- 131.17%
- Q3
- 63.48%
- Median
- 29.43%
- 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.
Dividend at a Glance
| Symbol | BBY | MELI |
|---|---|---|
| Dividend Yield (TTM) | 5.33% | 0.00% |
| Dividend Payout Ratio (TTM) | 91.39% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
BBY
17.16
Specialty Retail Industry
- Max
- 48.56
- Q3
- 29.15
- Median
- 22.00
- Q1
- 15.46
- Min
- 7.95
BBY’s P/E Ratio of 17.16 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
58.60
Broadline Retail Industry
- Max
- 66.12
- Q3
- 35.17
- Median
- 16.29
- Q1
- 10.47
- Min
- 5.94
A P/E Ratio of 58.60 places MELI in the upper quartile for the Broadline Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
BBY
0.37
Specialty Retail Industry
- Max
- 5.08
- Q3
- 2.69
- Median
- 1.23
- Q1
- 0.48
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, BBY’s P/S Ratio of 0.37 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
MELI
4.99
Broadline Retail Industry
- Max
- 5.40
- Q3
- 3.33
- Median
- 2.04
- Q1
- 0.80
- Min
- 0.16
MELI’s P/S Ratio of 4.99 is in the upper echelon for the Broadline 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.
Price-to-Book Ratio (MRQ)
BBY
5.18
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.98
- Median
- 3.69
- Q1
- 1.79
- Min
- 0.21
BBY’s P/B Ratio of 5.18 is within the conventional range for the Specialty Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
MELI
23.19
Broadline Retail Industry
- Max
- 9.06
- Q3
- 5.22
- Median
- 3.48
- Q1
- 1.90
- Min
- 0.74
At 23.19, MELI’s P/B Ratio is at an extreme premium to the Broadline 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.
Valuation at a Glance
| Symbol | BBY | MELI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 17.16 | 58.60 |
| Price-to-Sales Ratio (TTM) | 0.37 | 4.99 |
| Price-to-Book Ratio (MRQ) | 5.18 | 23.19 |
| Price-to-Free Cash Flow Ratio (TTM) | 8.23 | 16.29 |