Reviewing MercadoLibre (NASDAQ:MELI) & TuanChe (NASDAQ:TC)

TuanChe (NASDAQ:TC) and MercadoLibre (NASDAQ:MELI) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares TuanChe and MercadoLibre”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$102.52 million	0.02	-$11.69 million	N/A	N/A
MercadoLibre	$18.49 billion	4.73	$987.00 million	$28.34	60.88

MercadoLibre has higher revenue and earnings than TuanChe.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TuanChe and MercadoLibre, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	0.00
MercadoLibre	0	2	14	1	2.94

MercadoLibre has a consensus price target of $2,267.67, suggesting a potential upside of 31.42%. Given MercadoLibre’s stronger consensus rating and higher probable upside, analysts plainly believe MercadoLibre is more favorable than TuanChe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
MercadoLibre	7.57%	40.71%	7.24%

Volatility & Risk

TuanChe has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Institutional and Insider Ownership

8.9% of TuanChe shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 0.5% of TuanChe shares are owned by insiders. Comparatively, 0.1% of MercadoLibre shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

MercadoLibre beats TuanChe on 12 of the 13 factors compared between the two stocks.

About TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

About MercadoLibre

MercadoLibre, Inc. operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.