Seek Returns logo

MELI vs. MGM: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at MELI and MGM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMELIMGM
Company NameMercadoLibre, Inc.MGM Resorts International
CountryUruguayUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryBroadline RetailHotels, Restaurants & Leisure
Market Capitalization122.35 billion USD10.83 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 10, 2007May 2, 1988
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MELI and MGM 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.

MELI vs. MGM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMELIMGM
5-Day Price Return3.25%9.80%
13-Week Price Return-5.55%24.32%
26-Week Price Return6.79%10.47%
52-Week Price Return20.39%4.55%
Month-to-Date Return1.67%9.11%
Year-to-Date Return41.93%14.78%
10-Day Avg. Volume0.30M3.74M
3-Month Avg. Volume0.35M4.93M
3-Month Volatility26.55%35.81%
Beta1.511.71

Profitability

Return on Equity (TTM)

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.

MGM

17.86%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

MGM’s Return on Equity of 17.86% 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 vs. MGM: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Net Profit Margin (TTM)

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.

MGM

3.13%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, MGM’s Net Profit Margin of 3.13% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MELI vs. MGM: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Operating Profit Margin (TTM)

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.

MGM

8.11%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

MGM’s Operating Profit Margin of 8.11% is around the midpoint for the Hotels, Restaurants & Leisure industry, indicating that its efficiency in managing core business operations is typical for the sector.

MELI vs. MGM: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Profitability at a Glance

SymbolMELIMGM
Return on Equity (TTM)43.06%17.86%
Return on Assets (TTM)7.57%1.28%
Net Profit Margin (TTM)8.52%3.13%
Operating Profit Margin (TTM)12.30%8.11%
Gross Profit Margin (TTM)45.87%44.95%

Financial Strength

Current Ratio (MRQ)

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.

MGM

1.22

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

MGM’s Current Ratio of 1.22 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

MELI vs. MGM: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

MGM

2.18

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

MGM’s Debt-to-Equity Ratio of 2.18 is typical for the Hotels, Restaurants & Leisure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MELI vs. MGM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Interest Coverage Ratio (TTM)

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.

MGM

3.29

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

MGM’s Interest Coverage Ratio of 3.29 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.

MELI vs. MGM: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Financial Strength at a Glance

SymbolMELIMGM
Current Ratio (MRQ)1.201.22
Quick Ratio (MRQ)1.181.02
Debt-to-Equity Ratio (MRQ)1.282.18
Interest Coverage Ratio (TTM)13.223.29

Growth

Revenue Growth

MELI vs. MGM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MELI vs. MGM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

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.

MGM

0.00%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
Q1
0.00%
Min
0.00%

MGM 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 vs. MGM: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Dividend Payout Ratio (TTM)

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.

MGM

0.09%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

MGM’s Dividend Payout Ratio of 0.09% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MELI vs. MGM: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Dividend at a Glance

SymbolMELIMGM
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.09%

Valuation

Price-to-Earnings Ratio (TTM)

MELI

58.41

Broadline Retail Industry

Max
66.12
Q3
35.17
Median
16.29
Q1
10.47
Min
5.94

A P/E Ratio of 58.41 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.

MGM

18.45

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

MGM’s P/E Ratio of 18.45 is within the middle range for the Hotels, Restaurants & Leisure 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 vs. MGM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Sales Ratio (TTM)

MELI

4.98

Broadline Retail Industry

Max
5.40
Q3
3.33
Median
2.04
Q1
0.80
Min
0.16

MELI’s P/S Ratio of 4.98 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.

MGM

0.58

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

In the lower quartile for the Hotels, Restaurants & Leisure industry, MGM’s P/S Ratio of 0.58 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 vs. MGM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

MGM

3.15

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

MGM’s P/B Ratio of 3.15 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 vs. MGM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Hotels, Restaurants & Leisure industry benchmarks.

Valuation at a Glance

SymbolMELIMGM
Price-to-Earnings Ratio (TTM)58.4118.45
Price-to-Sales Ratio (TTM)4.980.58
Price-to-Book Ratio (MRQ)23.193.15
Price-to-Free Cash Flow Ratio (TTM)16.247.69