Mercadolibre (NASDAQ:MELI) and Fidelity National Information Servcs (NYSE:FIS) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Volatility & Risk
Mercadolibre has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Fidelity National Information Servcs has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Mercadolibre pays an annual dividend of $0.15 per share and has a dividend yield of 0.0%. Fidelity National Information Servcs pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Mercadolibre pays out 5.9% of its earnings in the form of a dividend. Fidelity National Information Servcs pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mercadolibre has raised its dividend for 2 consecutive years.
This table compares Mercadolibre and Fidelity National Information Servcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||16.59%||15.42%||6.70%|
Earnings & Valuation
This table compares Mercadolibre and Fidelity National Information Servcs’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mercadolibre||$1.40 billion||10.72||$13.78 million||$2.53||134.19|
|Fidelity National Information Servcs||$9.12 billion||3.87||$1.32 billion||$4.42||24.27|
Fidelity National Information Servcs has higher revenue and earnings than Mercadolibre. Fidelity National Information Servcs is trading at a lower price-to-earnings ratio than Mercadolibre, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Mercadolibre and Fidelity National Information Servcs, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||2||12||0||2.86|
Mercadolibre presently has a consensus target price of $350.58, suggesting a potential upside of 3.26%. Fidelity National Information Servcs has a consensus target price of $115.58, suggesting a potential upside of 7.73%. Given Fidelity National Information Servcs’ stronger consensus rating and higher possible upside, analysts clearly believe Fidelity National Information Servcs is more favorable than Mercadolibre.
Insider & Institutional Ownership
95.2% of Mercadolibre shares are held by institutional investors. Comparatively, 88.0% of Fidelity National Information Servcs shares are held by institutional investors. 0.3% of Mercadolibre shares are held by company insiders. Comparatively, 2.1% of Fidelity National Information Servcs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Fidelity National Information Servcs beats Mercadolibre on 11 of the 17 factors compared between the two stocks.
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.
About Fidelity National Information Servcs
Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides capital markets, asset management, and insurance solutions, as well as banking and payments solutions to financial institutions, such as securities processing and finance, global trading, asset management and insurance, and retail banking and payment services. The company was founded in 1968 and is headquartered in Jacksonville, Florida.
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