CAVA vs. MELI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CAVA and MELI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CAVA | MELI |
|---|---|---|
| Company Name | CAVA Group, Inc. | MercadoLibre, Inc. |
| Country | United States | Uruguay |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Broadline Retail |
| Market Capitalization | 5.76 billion USD | 106.06 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 15, 2023 | August 10, 2007 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CAVA 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 | CAVA | MELI |
|---|---|---|
| 5-Day Price Return | -3.95% | -9.27% |
| 13-Week Price Return | -39.66% | -8.73% |
| 26-Week Price Return | -47.06% | -7.52% |
| 52-Week Price Return | -64.87% | 17.92% |
| Month-to-Date Return | -7.57% | -10.11% |
| Year-to-Date Return | -55.98% | 23.03% |
| 10-Day Avg. Volume | 6.57M | 0.61M |
| 3-Month Avg. Volume | 4.56M | 0.43M |
| 3-Month Volatility | 53.23% | 41.11% |
| Beta | 1.76 | 1.44 |
Profitability
Return on Equity (TTM)
CAVA
18.69%
Hotels, Restaurants & Leisure Industry
- Max
- 84.03%
- Q3
- 40.12%
- Median
- 17.38%
- Q1
- 7.45%
- Min
- -33.94%
CAVA’s Return on Equity of 18.69% is on par with the norm for the Hotels, Restaurants & Leisure industry, indicating its profitability relative to shareholder equity is typical for the sector.
MELI
39.03%
Broadline Retail Industry
- Max
- 47.53%
- Q3
- 31.20%
- Median
- 16.63%
- Q1
- 10.81%
- Min
- -7.57%
In the upper quartile for the Broadline Retail industry, MELI’s Return on Equity of 39.03% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CAVA
12.14%
Hotels, Restaurants & Leisure Industry
- Max
- 25.61%
- Q3
- 14.65%
- Median
- 8.66%
- Q1
- 3.36%
- Min
- -9.83%
CAVA’s Net Profit Margin of 12.14% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.
MELI
7.93%
Broadline Retail Industry
- Max
- 24.63%
- Q3
- 12.77%
- Median
- 8.63%
- Q1
- 4.50%
- Min
- -1.62%
MELI’s Net Profit Margin of 7.93% 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)
CAVA
4.98%
Hotels, Restaurants & Leisure Industry
- Max
- 45.80%
- Q3
- 22.44%
- Median
- 14.98%
- Q1
- 6.59%
- Min
- -15.28%
CAVA’s Operating Profit Margin of 4.98% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
MELI
11.96%
Broadline Retail Industry
- Max
- 27.48%
- Q3
- 17.60%
- Median
- 10.82%
- Q1
- 7.76%
- Min
- -6.73%
MELI’s Operating Profit Margin of 11.96% 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 | CAVA | MELI |
|---|---|---|
| Return on Equity (TTM) | 18.69% | 39.03% |
| Return on Assets (TTM) | 10.97% | 6.78% |
| Net Profit Margin (TTM) | 12.14% | 7.93% |
| Operating Profit Margin (TTM) | 4.98% | 11.96% |
| Gross Profit Margin (TTM) | 32.01% | 45.14% |
Financial Strength
Current Ratio (MRQ)
CAVA
2.69
Hotels, Restaurants & Leisure Industry
- Max
- 2.73
- Q3
- 1.63
- Median
- 1.12
- Q1
- 0.73
- Min
- 0.18
CAVA’s Current Ratio of 2.69 is in the upper quartile for the Hotels, Restaurants & Leisure industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
MELI
1.17
Broadline Retail Industry
- Max
- 3.54
- Q3
- 2.42
- Median
- 1.38
- Q1
- 1.20
- Min
- 0.69
MELI’s Current Ratio of 1.17 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)
CAVA
0.00
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 4.71
- Median
- 1.65
- Q1
- 0.27
- Min
- 0.00
Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, CAVA’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
MELI
1.26
Broadline Retail Industry
- Max
- 2.01
- Q3
- 1.31
- Median
- 0.72
- Q1
- 0.32
- Min
- 0.00
MELI’s Debt-to-Equity Ratio of 1.26 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)
CAVA
-1,252.06
Hotels, Restaurants & Leisure Industry
- Max
- 21.72
- Q3
- 11.40
- Median
- 4.02
- Q1
- 1.19
- Min
- -11.84
CAVA has a negative Interest Coverage Ratio of -1,252.06. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
MELI
13.22
Broadline Retail Industry
- Max
- 37.34
- Q3
- 21.16
- Median
- 8.60
- Q1
- 3.22
- 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 | CAVA | MELI |
|---|---|---|
| Current Ratio (MRQ) | 2.69 | 1.17 |
| Quick Ratio (MRQ) | 2.56 | 1.15 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 1.26 |
| Interest Coverage Ratio (TTM) | -1,252.06 | 13.22 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CAVA
0.00%
Hotels, Restaurants & Leisure Industry
- Max
- 6.81%
- Q3
- 2.73%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
CAVA 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%
Broadline Retail Industry
- Max
- 4.06%
- Q3
- 2.07%
- Median
- 0.37%
- 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)
CAVA
0.00%
Hotels, Restaurants & Leisure Industry
- Max
- 128.39%
- Q3
- 61.60%
- Median
- 21.91%
- Q1
- 0.00%
- Min
- 0.00%
CAVA 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%
Broadline Retail Industry
- Max
- 114.82%
- Q3
- 62.39%
- Median
- 28.55%
- 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 | CAVA | MELI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CAVA
41.91
Hotels, Restaurants & Leisure Industry
- Max
- 56.96
- Q3
- 33.82
- Median
- 21.30
- Q1
- 15.75
- Min
- 6.06
A P/E Ratio of 41.91 places CAVA in the upper quartile for the Hotels, Restaurants & Leisure industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
MELI
51.47
Broadline Retail Industry
- Max
- 62.76
- Q3
- 32.50
- Median
- 17.65
- Q1
- 12.08
- Min
- 6.87
A P/E Ratio of 51.47 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)
CAVA
5.09
Hotels, Restaurants & Leisure Industry
- Max
- 7.19
- Q3
- 3.99
- Median
- 1.93
- Q1
- 1.26
- Min
- 0.17
CAVA’s P/S Ratio of 5.09 is in the upper echelon for the Hotels, Restaurants & Leisure 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
4.08
Broadline Retail Industry
- Max
- 5.19
- Q3
- 3.25
- Median
- 2.13
- Q1
- 1.01
- Min
- 0.21
MELI’s P/S Ratio of 4.08 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)
CAVA
9.62
Hotels, Restaurants & Leisure Industry
- Max
- 24.89
- Q3
- 11.60
- Median
- 4.91
- Q1
- 2.29
- Min
- 0.37
CAVA’s P/B Ratio of 9.62 is within the conventional range for the Hotels, Restaurants & Leisure 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
19.05
Broadline Retail Industry
- Max
- 8.81
- Q3
- 5.19
- Median
- 3.42
- Q1
- 1.75
- Min
- 0.73
At 19.05, 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 | CAVA | MELI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 41.91 | 51.47 |
| Price-to-Sales Ratio (TTM) | 5.09 | 4.08 |
| Price-to-Book Ratio (MRQ) | 9.62 | 19.05 |
| Price-to-Free Cash Flow Ratio (TTM) | 226.91 | 12.42 |