Mercadolibre (MELI) vs. Stitch Fix (SFIX) Head to Head Analysis

Stitch Fix (NASDAQ: SFIX) and Mercadolibre (NASDAQ:MELI) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Earnings and Valuation

This table compares Stitch Fix and Mercadolibre’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stitch Fix $977.13 million 2.05 -$590,000.00 N/A N/A
Mercadolibre $844.40 million 18.06 $136.36 million $3.01 114.72

Mercadolibre has lower revenue, but higher earnings than Stitch Fix.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Stitch Fix and Mercadolibre, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stitch Fix 0 4 3 0 2.43
Mercadolibre 1 5 7 0 2.46

Stitch Fix presently has a consensus price target of $25.83, suggesting a potential upside of 24.80%. Mercadolibre has a consensus price target of $273.92, suggesting a potential downside of 20.67%. Given Stitch Fix’s higher possible upside, research analysts clearly believe Stitch Fix is more favorable than Mercadolibre.

Profitability

This table compares Stitch Fix and Mercadolibre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stitch Fix N/A N/A N/A
Mercadolibre 10.91% 34.78% 10.33%

Insider and Institutional Ownership

89.5% of Mercadolibre shares are owned by institutional investors. 0.4% of Mercadolibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Mercadolibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Stitch Fix does not pay a dividend. Mercadolibre pays out 19.9% of its earnings in the form of a dividend.

Summary

Mercadolibre beats Stitch Fix on 10 of the 13 factors compared between the two stocks.

About Stitch Fix

Stitch Fix, Inc. is an online personalized styling service company. The Company offers apparel, shoes and accessories across categories, brands, product types and price points. The Company serves its clients in the following categories: Women’s, Petite, Maternity, Men’s and Plus. The Company also offers a wide variety of product types, including denim, dresses, blouses, skirts, shoes, jewelry and handbags. The Company’s data science capabilities fuel business consist of rich and growing set of detailed client and merchandise data and proprietary algorithms. The Company uses data science throughout its business, including prediction of purchase behavior, forecast demand, optimize inventory and design new apparel.

About Mercadolibre

MercadoLibre, Inc. is an e-commerce company. The Company enables commerce through its marketplace platform in Latin America, which is designed to provide users with a portfolio of services to facilitate commercial transactions. Its geographic segments are Brazil, Argentina, Mexico Venezuela and Other Countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America). It also operates online commerce platforms in the Dominican Republic, Honduras, Nicaragua, Salvador, Panama, Bolivia, Guatemala, Paraguay and Portugal. It offers an ecosystem of six integrated e-commerce services: the MercadoLibre Marketplace, the MercadoLibre Classifieds Service, the MercadoPago payments solution, the MercadoLibre advertising program, the MercadoShops online Webstores solution and the MercadoEnvios shipping service.

Receive News & Ratings for Stitch Fix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stitch Fix and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply