Critical Contrast: CafePress (PRSS) vs. MercadoLibre (MELI)
CafePress (NASDAQ: PRSS) and MercadoLibre (NASDAQ:MELI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Valuation and Earnings
This table compares CafePress and MercadoLibre’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CafePress||$102.21 million||0.29||-$26.47 million||($0.44)||-3.95|
|MercadoLibre||$844.40 million||14.17||$136.36 million||$3.01||89.99|
MercadoLibre has higher revenue and earnings than CafePress. CafePress is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
10.8% of CafePress shares are owned by institutional investors. Comparatively, 84.1% of MercadoLibre shares are owned by institutional investors. 17.3% of CafePress shares are owned by company insiders. Comparatively, 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 stock will outperform the market over the long term.
Risk and Volatility
CafePress has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.
This table compares CafePress and MercadoLibre’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for CafePress and MercadoLibre, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CafePress presently has a consensus target price of $3.50, suggesting a potential upside of 101.15%. MercadoLibre has a consensus target price of $267.42, suggesting a potential downside of 1.27%. Given CafePress’ higher probable upside, equities analysts clearly believe CafePress is more favorable than MercadoLibre.
MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. CafePress does not pay a dividend. MercadoLibre pays out 19.9% of its earnings in the form of a dividend.
MercadoLibre beats CafePress on 12 of the 15 factors compared between the two stocks.
CafePress Company Profile
CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.
MercadoLibre Company Profile
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.
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