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

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

Company Profile

SymbolMELISW
Company NameMercadoLibre, Inc.Smurfit Westrock Plc
CountryUruguayIreland
GICS SectorConsumer DiscretionaryMaterials
GICS IndustryBroadline RetailContainers & Packaging
Market Capitalization118.43 billion USD21.90 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 10, 2007June 17, 2008
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MELI and SW 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. SW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMELISW
5-Day Price Return0.70%-4.05%
13-Week Price Return-9.40%-9.57%
26-Week Price Return13.06%-23.24%
52-Week Price Return15.19%-3.54%
Month-to-Date Return-1.60%-5.48%
Year-to-Date Return37.38%-22.11%
10-Day Avg. Volume0.33M4.11M
3-Month Avg. Volume0.36M3.61M
3-Month Volatility26.33%31.62%
Beta1.511.10

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.

SW

2.94%

Containers & Packaging Industry

Max
41.66%
Q3
20.76%
Median
14.35%
Q1
6.55%
Min
3.64%

A Return on Equity of 2.94% places SW below the typical range for the Containers & Packaging industry. This suggests challenges in efficiently using shareholder capital to generate profit, which could point to operational issues or a conservative capital structure.

MELI vs. SW: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Containers & Packaging 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.

SW

1.18%

Containers & Packaging Industry

Max
11.61%
Q3
8.17%
Median
4.91%
Q1
4.20%
Min
0.08%

Falling into the lower quartile for the Containers & Packaging industry, SW’s Net Profit Margin of 1.18% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MELI vs. SW: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Containers & Packaging 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.

SW

4.20%

Containers & Packaging Industry

Max
22.03%
Q3
13.17%
Median
8.87%
Q1
6.86%
Min
0.07%

SW’s Operating Profit Margin of 4.20% is in the lower quartile for the Containers & Packaging industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

MELI vs. SW: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Containers & Packaging industry benchmarks.

Profitability at a Glance

SymbolMELISW
Return on Equity (TTM)43.06%2.94%
Return on Assets (TTM)7.57%1.17%
Net Profit Margin (TTM)8.52%1.18%
Operating Profit Margin (TTM)12.30%4.20%
Gross Profit Margin (TTM)45.87%19.46%

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.

SW

1.45

Containers & Packaging Industry

Max
2.13
Q3
1.57
Median
1.27
Q1
1.13
Min
0.58

SW’s Current Ratio of 1.45 aligns with the median group of the Containers & Packaging industry, indicating that its short-term liquidity is in line with its sector peers.

MELI vs. SW: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Containers & Packaging 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.

SW

0.79

Containers & Packaging Industry

Max
4.50
Q3
2.23
Median
1.22
Q1
0.54
Min
0.23

SW’s Debt-to-Equity Ratio of 0.79 is typical for the Containers & Packaging industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MELI vs. SW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Containers & Packaging 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.

SW

2.41

Containers & Packaging Industry

Max
13.16
Q3
8.10
Median
3.61
Q1
2.94
Min
1.06

In the lower quartile for the Containers & Packaging industry, SW’s Interest Coverage Ratio of 2.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

MELI vs. SW: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Containers & Packaging industry benchmarks.

Financial Strength at a Glance

SymbolMELISW
Current Ratio (MRQ)1.201.45
Quick Ratio (MRQ)1.180.95
Debt-to-Equity Ratio (MRQ)1.280.79
Interest Coverage Ratio (TTM)13.222.41

Growth

Revenue Growth

MELI vs. SW: 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. SW: 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.

SW

3.50%

Containers & Packaging Industry

Max
7.37%
Q3
4.07%
Median
3.33%
Q1
1.72%
Min
0.00%

SW’s Dividend Yield of 3.50% is consistent with its peers in the Containers & Packaging industry, providing a dividend return that is standard for its sector.

MELI vs. SW: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Containers & Packaging 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.

SW

85.87%

Containers & Packaging Industry

Max
221.20%
Q3
119.52%
Median
58.05%
Q1
28.91%
Min
0.00%

SW’s Dividend Payout Ratio of 85.87% is within the typical range for the Containers & Packaging industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MELI vs. SW: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Containers & Packaging industry benchmarks.

Dividend at a Glance

SymbolMELISW
Dividend Yield (TTM)0.00%3.50%
Dividend Payout Ratio (TTM)0.00%85.87%

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.

SW

41.59

Containers & Packaging Industry

Max
35.98
Q3
27.87
Median
16.15
Q1
14.38
Min
8.20

At 41.59, SW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Containers & Packaging industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

MELI vs. SW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Containers & Packaging 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.

SW

0.49

Containers & Packaging Industry

Max
2.91
Q3
1.67
Median
0.83
Q1
0.64
Min
0.30

In the lower quartile for the Containers & Packaging industry, SW’s P/S Ratio of 0.49 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. SW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Containers & Packaging 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.

SW

1.23

Containers & Packaging Industry

Max
5.28
Q3
3.30
Median
2.35
Q1
1.57
Min
0.89

SW’s P/B Ratio of 1.23 is in the lower quartile for the Containers & Packaging industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

MELI vs. SW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Containers & Packaging industry benchmarks.

Valuation at a Glance

SymbolMELISW
Price-to-Earnings Ratio (TTM)58.4141.59
Price-to-Sales Ratio (TTM)4.980.49
Price-to-Book Ratio (MRQ)23.191.23
Price-to-Free Cash Flow Ratio (TTM)16.2442.07