Limelight Networks (LLNW) and MercadoLibre (MELI) Head-To-Head Analysis

Limelight Networks (NASDAQ: LLNW) and MercadoLibre (NASDAQ:MELI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Volatility & Risk

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Limelight Networks has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

Profitability

This table compares Limelight Networks and MercadoLibre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limelight Networks -4.14% -1.50% -1.05%
MercadoLibre 0.99% 26.75% 7.12%

Valuation & Earnings

This table compares Limelight Networks and MercadoLibre’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Limelight Networks $184.36 million 2.37 -$7.63 million ($0.02) -197.50
MercadoLibre $1.40 billion 10.82 $13.78 million $2.53 135.39

MercadoLibre has higher revenue and earnings than Limelight Networks. Limelight Networks is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.

Dividends

MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Limelight Networks does not pay a dividend. MercadoLibre pays out 23.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Limelight Networks and MercadoLibre, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 0 3 0 3.00
MercadoLibre 1 4 6 0 2.45

Limelight Networks presently has a consensus price target of $5.83, indicating a potential upside of 47.68%. MercadoLibre has a consensus price target of $321.18, indicating a potential downside of 6.24%. Given Limelight Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Limelight Networks is more favorable than MercadoLibre.

Insider & Institutional Ownership

69.0% of Limelight Networks shares are owned by institutional investors. Comparatively, 92.1% of MercadoLibre shares are owned by institutional investors. 37.6% of Limelight Networks shares are owned by insiders. Comparatively, 0.4% of MercadoLibre shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

MercadoLibre beats Limelight Networks on 11 of the 16 factors compared between the two stocks.

Limelight Networks Company Profile

Limelight Networks, Inc. provides content delivery and related services and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers services and solutions for businesses to deliver their digital content across Internet, mobile, and social channels. It provides Orchestrate Platform, a suite of integrated services comprising content delivery, video content management, Website and Web application acceleration, Website and content security, and cloud storage services. The company also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, game, software, and social media industries, as well as enterprises, technology companies, and government entities conducting business online. Limelight Networks, Inc. was founded in 2001 and is headquartered in Tempe, Arizona.

MercadoLibre Company Profile

MercadoLibre, Inc. hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The company's Marketplace platform enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list and purchase items and services. It also provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, real estate, and services outside the Marketplace platform; and MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre Marketplace by providing a mechanism that allows its users to send and receive payments online. In addition, the company offers MercadoLibre Advertising platform, which enables large retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing services; and advertisers to place text, display, or banner advertisements in order to promote their brands and offerings on its Webpages and associated sites. Further, it provides MercadoShops, a software-as-a-service, hosted online store solution that enables users to set-up, manage, and promote their own Webstores; and MercadoEnvios, a shipping service for marketplace users. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.

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