Comprehensive Stock Comparison
Compare Hour Loop, Inc. (HOUR) 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 HOUR's 4.6% |
| Value | MELI | Lower P/E (30.8x vs 102.1x) |
| Quality / Margins | MELI | 6.9% net margin vs HOUR's 0.6% |
| Stability / Safety | MELI | Beta 0.88 vs HOUR's 0.97 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | HOUR | +2.7% vs MELI's -17.2% |
| Efficiency (ROA) | MELI | 4.7% ROA vs HOUR's 2.6%, ROIC 20.8% vs 10.3% |
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
Hour Loop is an online retailer that sells a wide variety of consumer goods — including home décor, toys, kitchenware, and electronics — primarily through third-party marketplaces. It generates revenue by selling products on platforms like Amazon and Walmart.com, with marketplace sales representing the vast majority of its business. The company's advantage lies in its data-driven approach to identifying and sourcing trending products to sell across multiple e-commerce channels.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MELI leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). HOUR leads in 1 (Analyst Outlook). 1 tied.
Financial Metrics (TTM)
MELI is the larger business by revenue, generating $28.9B annually — 205.2x HOUR's $141M. MELI is the more profitable business, keeping 6.9% of every revenue dollar as net income compared to HOUR's 0.6%. On growth, MELI holds the edge at +44.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $141M | $28.9B |
| EBITDAEarnings before interest/tax | $1M | $4.0B |
| Net IncomeAfter-tax profit | $834,945 | $2.0B |
| Free Cash FlowCash after capex | $1M | $10.1B |
| Gross MarginGross profit ÷ Revenue | +50.9% | +44.5% |
| Operating MarginEBIT ÷ Revenue | +0.6% | +11.1% |
| Net MarginNet income ÷ Revenue | +0.6% | +6.9% |
| FCF MarginFCF ÷ Revenue | +1.0% | +35.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.6% | +44.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -25.4% | -12.5% |
Valuation Metrics
At 44.6x trailing earnings, MELI trades at a 56% valuation discount to HOUR's 102.1x P/E. On an enterprise value basis, MELI's 24.1x EV/EBITDA is more attractive than HOUR's 77.4x.
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Market CapShares × price | $67M | $89.1B |
| Enterprise ValueMkt cap + debt − cash | $66M | $96.8B |
| Trailing P/EPrice ÷ TTM EPS | 102.14x | 44.62x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 30.76x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 77.39x | 24.09x |
| Price / SalesMarket cap ÷ Revenue | 0.49x | 3.08x |
| Price / BookPrice ÷ Book value/share | 13.00x | 13.20x |
| Price / FCFMarket cap ÷ FCF | 242.39x | 8.27x |
Profitability & Efficiency
MELI delivers a 29.6% return on equity — every $100 of shareholder capital generates $30 in annual profit, vs $11 for HOUR. HOUR carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to MELI's 1.69x. On the Piotroski fundamental quality scale (0–9), HOUR scores 6/9 vs MELI's 5/9, reflecting solid financial health.
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +10.9% | +29.6% |
| ROA (TTM)Return on assets | +2.6% | +4.7% |
| ROICReturn on invested capital | +10.3% | +20.8% |
| ROCEReturn on capital employed | +10.6% | +28.3% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.14x | 1.69x |
| Net DebtTotal debt minus cash | -$1M | $7.7B |
| Cash & Equiv.Liquid assets | $2M | $3.7B |
| Total DebtShort + long-term debt | $725,507 | $11.4B |
| Interest CoverageEBIT ÷ Interest expense | 6.47x | — |
Total Returns (with DRIP)
A $10,000 investment in MELI five years ago would be worth $10,259 today (with dividends reinvested), compared to $2,390 for HOUR. Over the past 12 months, HOUR leads with a +2.7% total return vs MELI's -17.2%. The 3-year compound annual growth rate (CAGR) favors MELI at 12.9% vs HOUR's -4.9% — a key indicator of consistent wealth creation.
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +3.2% | -10.9% |
| 1-Year ReturnPast 12 months | +2.7% | -17.2% |
| 3-Year ReturnCumulative with dividends | -14.0% | +44.1% |
| 5-Year ReturnCumulative with dividends | -76.1% | +2.6% |
| 10-Year ReturnCumulative with dividends | -76.1% | +1628.4% |
| CAGR (3Y)Annualised 3-year return | -4.9% | +12.9% |
Risk & Volatility
MELI is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than HOUR's 0.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MELI currently trades 66.4% from its 52-week high vs HOUR's 27.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 0.88x |
| 52-Week HighHighest price in past year | $6.84 | $2645.22 |
| 52-Week LowLowest price in past year | $1.10 | $1665.00 |
| % of 52W HighCurrent price vs 52-week peak | +27.9% | +66.4% |
| RSI (14)Momentum oscillator 0–100 | 55.1 | 28.7 |
| Avg Volume (50D)Average daily shares traded | 21K | 418K |
Analyst Outlook
| Metric | HOURHour Loop, Inc. | MELIMercadoLibre, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $2810.00 |
| # AnalystsCovering analysts | — | 33 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Jan 22 | Feb 26 | Change |
|---|---|---|---|
| Hour Loop, Inc. (HOUR) | 100 | 22.28 | -77.7% |
| MercadoLibre, Inc. (MELI) | 100 | 188.67 | +88.7% |
MercadoLibre, Inc. (MELI) returned +3% over 5 years vs Hour Loop, Inc. (HOUR)'s -76%. A $10,000 investment in MELI 5 years ago would be worth $10,259 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Hour Loop, Inc. (HOUR) | $27M | $138M | +420.4% |
| MercadoLibre, Inc. (MELI) | $844M | $28.9B | +3321.7% |
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 |
|---|---|---|---|
| Hour Loop, Inc. (HOUR) | -1.6% | 0.5% | +129.8% |
| MercadoLibre, Inc. (MELI) | 16.1% | 6.9% | -57.2% |
MercadoLibre, Inc.'s net margin went from 16% (2016) to 7% (2025).
Chart 4P/E Ratio History — 4 Years
| Stock | 2022 | 2025 | Change |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | 88.8 | 51.1 | -42.5% |
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 |
|---|---|---|---|
| Hour Loop, Inc. (HOUR) | -0.01 | 0.02 | +236.5% |
| MercadoLibre, Inc. (MELI) | 3.09 | 39.39 | +1174.8% |
MercadoLibre, Inc.'s EPS grew from $3.09 (2016) to $39.39 (2025) — a 33% CAGR.
Chart 6Free Cash Flow — 5 Years
Hour Loop, Inc. generated $0M FCF in 2024 (-96% vs 2021). MercadoLibre, Inc. generated $11B FCF in 2025 (+2930% vs 2021).
HOUR vs MELI: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is HOUR or MELI a better buy right now?
MercadoLibre, Inc. (MELI) offers the better valuation at 44.6x trailing P/E (30.8x 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 — HOUR or MELI?
On trailing P/E, MercadoLibre, Inc. (MELI) is the cheapest at 44.6x versus Hour Loop, Inc. at 102.1x.
03Which is the better long-term investment — HOUR or MELI?
Over the past 5 years, MercadoLibre, Inc. (MELI) delivered a total return of +2.6%, compared to -76.1% for Hour Loop, Inc. (HOUR). A $10,000 investment in MELI five years ago would be worth approximately $10K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MELI returned +1628% versus HOUR's -76.1%. 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 — HOUR or MELI?
By beta (market sensitivity over 5 years), MercadoLibre, Inc. (MELI) is the lower-risk stock at 0.88β versus Hour Loop, Inc.'s 0.97β — meaning HOUR is approximately 10% more volatile than MELI relative to the S&P 500. On balance sheet safety, Hour Loop, Inc. (HOUR) carries a lower debt/equity ratio of 14% versus 169% for MercadoLibre, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — HOUR or MELI?
MercadoLibre, Inc. (MELI) is the more profitable company, earning 6.9% net margin versus 0.5% for Hour Loop, Inc. — meaning it keeps 6.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MELI leads at 11.1% versus 0.5% for HOUR. At the gross margin level — before operating expenses — HOUR leads at 52.1%, 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.
06Which pays a better dividend — HOUR or MELI?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is HOUR 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%, HOUR: -76.1%), 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.
08What are the main differences between HOUR 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. 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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