Comprehensive Stock Comparison
Compare eBay Inc. (EBAY) vs MercadoLibre, Inc. (MELI) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | MELI | 39.1% revenue growth vs EBAY's 7.9% |
| Value | EBAY | Lower P/E (15.0x vs 30.8x) |
| Quality / Margins | EBAY | 18.3% net margin vs MELI's 6.9% |
| Stability / Safety | EBAY | Beta 0.57 vs MELI's 0.88, lower leverage |
| Dividends | EBAY | 1.3% yield; 7-year raise streak; MELI pays no meaningful dividend |
| Momentum (1Y) | EBAY | +42.1% vs MELI's -17.2% |
| Efficiency (ROA) | EBAY | 11.5% ROA vs MELI's 4.7%, ROIC 17.0% vs 20.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
eBay operates a global online marketplace connecting buyers and sellers of goods ranging from collectibles to everyday items. It generates revenue primarily through transaction fees — taking a percentage of each sale — along with listing fees and advertising services for sellers. Its key advantage is network effects from its massive user base and brand recognition as one of the original e-commerce platforms.
MercadoLibre is the dominant e-commerce and fintech platform across Latin America, operating online marketplaces and financial services. It generates revenue primarily from marketplace commissions and advertising fees (roughly 60%) and fintech services including payments, credit, and digital wallets (roughly 40%). The company's moat comes from its integrated ecosystem—combining e-commerce, payments, logistics, and credit—which creates powerful network effects and high switching costs across Latin America's fragmented markets.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
EBAY leads in 5 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
MELI is the larger business by revenue, generating $28.9B annually — 2.6x EBAY's $11.1B. EBAY is the more profitable business, keeping 18.3% of every revenue dollar as net income compared to MELI's 6.9%. On growth, MELI holds the edge at +44.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $11.1B | $28.9B |
| EBITDAEarnings before interest/tax | $2.6B | $4.0B |
| Net IncomeAfter-tax profit | $2.0B | $2.0B |
| Free Cash FlowCash after capex | $1.4B | $10.1B |
| Gross MarginGross profit ÷ Revenue | +71.5% | +44.5% |
| Operating MarginEBIT ÷ Revenue | +20.5% | +11.1% |
| Net MarginNet income ÷ Revenue | +18.3% | +6.9% |
| FCF MarginFCF ÷ Revenue | +13.0% | +35.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.0% | +44.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -17.9% | -12.5% |
Valuation Metrics
At 20.9x trailing earnings, EBAY trades at a 53% valuation discount to MELI's 44.6x P/E. On an enterprise value basis, EBAY's 17.9x EV/EBITDA is more attractive than MELI's 24.1x.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Market CapShares × price | $40.8B | $89.1B |
| Enterprise ValueMkt cap + debt − cash | $46.0B | $96.8B |
| Trailing P/EPrice ÷ TTM EPS | 20.94x | 44.62x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.02x | 30.76x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 17.86x | 24.09x |
| Price / SalesMarket cap ÷ Revenue | 3.68x | 3.08x |
| Price / BookPrice ÷ Book value/share | 9.06x | 13.20x |
| Price / FCFMarket cap ÷ FCF | 27.49x | 8.27x |
Profitability & Efficiency
EBAY delivers a 44.0% return on equity — every $100 of shareholder capital generates $44 in annual profit, vs $30 for MELI. EBAY carries lower financial leverage with a 1.53x debt-to-equity ratio, signaling a more conservative balance sheet compared to MELI's 1.69x. On the Piotroski fundamental quality scale (0–9), EBAY scores 6/9 vs MELI's 5/9, reflecting solid financial health.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +44.0% | +29.6% |
| ROA (TTM)Return on assets | +11.5% | +4.7% |
| ROICReturn on invested capital | +17.0% | +20.8% |
| ROCEReturn on capital employed | +17.4% | +28.3% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 1.53x | 1.69x |
| Net DebtTotal debt minus cash | $5.2B | $7.7B |
| Cash & Equiv.Liquid assets | $1.9B | $3.7B |
| Total DebtShort + long-term debt | $7.1B | $11.4B |
| Interest CoverageEBIT ÷ Interest expense | 10.13x | — |
Total Returns (with DRIP)
A $10,000 investment in EBAY five years ago would be worth $16,334 today (with dividends reinvested), compared to $10,259 for MELI. Over the past 12 months, EBAY leads with a +42.1% total return vs MELI's -17.2%. The 3-year compound annual growth rate (CAGR) favors EBAY at 27.0% vs MELI's 12.9% — a key indicator of consistent wealth creation.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +4.4% | -10.9% |
| 1-Year ReturnPast 12 months | +42.1% | -17.2% |
| 3-Year ReturnCumulative with dividends | +105.0% | +44.1% |
| 5-Year ReturnCumulative with dividends | +63.3% | +2.6% |
| 10-Year ReturnCumulative with dividends | +307.1% | +1628.4% |
| CAGR (3Y)Annualised 3-year return | +27.0% | +12.9% |
Risk & Volatility
EBAY is the less volatile stock with a 0.57 beta — it tends to amplify market swings less than MELI's 0.88 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. EBAY currently trades 89.8% from its 52-week high vs MELI's 66.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.57x | 0.88x |
| 52-Week HighHighest price in past year | $101.15 | $2645.22 |
| 52-Week LowLowest price in past year | $58.71 | $1665.00 |
| % of 52W HighCurrent price vs 52-week peak | +89.8% | +66.4% |
| RSI (14)Momentum oscillator 0–100 | 51.9 | 28.7 |
| Avg Volume (50D)Average daily shares traded | 4.1M | 418K |
Analyst Outlook
Wall Street rates EBAY as "Hold" and MELI as "Buy". Consensus price targets imply 59.9% upside for MELI (target: $2810) vs 9.1% for EBAY (target: $99). EBAY is the only dividend payer here at 1.27% yield — a key consideration for income-focused portfolios.
| Metric | EBAYeBay Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $99.13 | $2810.00 |
| # AnalystsCovering analysts | 68 | 33 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | — |
| Dividend StreakConsecutive years of raises | 7 | 0 |
| Dividend / ShareAnnual DPS | $1.15 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +6.1% | +0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| eBay Inc. (EBAY) | 100 | 260.79 | +160.8% |
| MercadoLibre, Inc. (MELI) | 100 | 334.4 | +234.4% |
eBay Inc. (EBAY) returned +63% over 5 years vs MercadoLibre, Inc. (MELI)'s +3%. A $10,000 investment in EBAY 5 years ago would be worth $16,334 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| eBay Inc. (EBAY) | $9.3B | $11.1B | +19.4% |
| MercadoLibre, Inc. (MELI) | $844M | $28.9B | +3321.7% |
eBay Inc.'s revenue grew from $9.3B (2016) to $11.1B (2025) — a 2.0% CAGR. MercadoLibre, Inc.'s revenue grew from $844M (2016) to $28.9B (2025) — a 48.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| eBay Inc. (EBAY) | 78.1% | 18.3% | -76.6% |
| MercadoLibre, Inc. (MELI) | 16.1% | 6.9% | -57.2% |
eBay Inc.'s net margin went from 78% (2016) to 18% (2025). MercadoLibre, Inc.'s net margin went from 16% (2016) to 7% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| eBay Inc. (EBAY) | 11 | 20.1 | +82.7% |
| MercadoLibre, Inc. (MELI) | 88.8 | 51.1 | -42.5% |
eBay Inc. has traded in a 3x–20x P/E range over 7 years; current trailing P/E is ~21x. MercadoLibre, Inc. has traded in a 45x–89x P/E range over 4 years; current trailing P/E is ~45x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| eBay Inc. (EBAY) | 6.35 | 4.34 | -31.7% |
| MercadoLibre, Inc. (MELI) | 3.09 | 39.39 | +1174.8% |
eBay Inc.'s EPS grew from $6.35 (2016) to $4.34 (2025) — a -4% CAGR. MercadoLibre, Inc.'s EPS grew from $3.09 (2016) to $39.39 (2025) — a 33% CAGR.
Chart 6Free Cash Flow — 5 Years
eBay Inc. generated $1B FCF in 2025 (-33% vs 2021). MercadoLibre, Inc. generated $11B FCF in 2025 (+2930% vs 2021).
EBAY vs MELI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EBAY or MELI a better buy right now?
eBay Inc. (EBAY) offers the better valuation at 20.9x trailing P/E (15.0x forward), making it the more compelling value choice. Analysts rate MercadoLibre, Inc. (MELI) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — EBAY or MELI?
On trailing P/E, eBay Inc. (EBAY) is the cheapest at 20.9x versus MercadoLibre, Inc. at 44.6x. On forward P/E, eBay Inc. is actually cheaper at 15.0x.
03Which is the better long-term investment — EBAY or MELI?
Over the past 5 years, eBay Inc. (EBAY) delivered a total return of +63.3%, compared to +2.6% for MercadoLibre, Inc. (MELI). A $10,000 investment in EBAY five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MELI returned +1628% versus EBAY's +307.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — EBAY or MELI?
By beta (market sensitivity over 5 years), eBay Inc. (EBAY) is the lower-risk stock at 0.57β versus MercadoLibre, Inc.'s 0.88β — meaning MELI is approximately 55% more volatile than EBAY relative to the S&P 500. On balance sheet safety, eBay Inc. (EBAY) carries a lower debt/equity ratio of 153% versus 169% for MercadoLibre, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — EBAY or MELI?
eBay Inc. (EBAY) is the more profitable company, earning 18.3% net margin versus 6.9% for MercadoLibre, Inc. — meaning it keeps 18.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EBAY leads at 20.5% versus 11.1% for MELI. At the gross margin level — before operating expenses — EBAY leads at 71.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is EBAY or MELI more undervalued right now?
On forward earnings alone, eBay Inc. (EBAY) trades at 15.0x forward P/E versus 30.8x for MercadoLibre, Inc. — 15.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MELI: 59.9% to $2810.00.
07Which pays a better dividend — EBAY or MELI?
In this comparison, EBAY (1.3% yield) pays a dividend. MELI does not pay a meaningful dividend and should not be held primarily for income.
08Is EBAY or MELI better for a retirement portfolio?
For long-horizon retirement investors, MercadoLibre, Inc. (MELI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), +1628% 10Y return). Both have compounded well over 10 years (MELI: +1628%, EBAY: +307.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between EBAY and MELI?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. EBAY pays a dividend while MELI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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