Comprehensive Stock Comparison
Compare MercadoLibre, Inc. (MELI) vs eBay Inc. (EBAY) 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
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.
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.
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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| RevenueTrailing 12 months | $28.9B | $11.1B |
| EBITDAEarnings before interest/tax | $4.0B | $2.6B |
| Net IncomeAfter-tax profit | $2.0B | $2.0B |
| Free Cash FlowCash after capex | $10.1B | $1.4B |
| Gross MarginGross profit ÷ Revenue | +44.5% | +71.5% |
| Operating MarginEBIT ÷ Revenue | +11.1% | +20.5% |
| Net MarginNet income ÷ Revenue | +6.9% | +18.3% |
| FCF MarginFCF ÷ Revenue | +35.0% | +13.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +44.6% | +15.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -12.5% | -17.9% |
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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| Market CapShares × price | $89.1B | $40.8B |
| Enterprise ValueMkt cap + debt − cash | $96.8B | $46.0B |
| Trailing P/EPrice ÷ TTM EPS | 44.62x | 20.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 30.76x | 15.02x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 24.09x | 17.86x |
| Price / SalesMarket cap ÷ Revenue | 3.08x | 3.68x |
| Price / BookPrice ÷ Book value/share | 13.20x | 9.06x |
| Price / FCFMarket cap ÷ FCF | 8.27x | 27.49x |
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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +29.6% | +44.0% |
| ROA (TTM)Return on assets | +4.7% | +11.5% |
| ROICReturn on invested capital | +20.8% | +17.0% |
| ROCEReturn on capital employed | +28.3% | +17.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 1.69x | 1.53x |
| Net DebtTotal debt minus cash | $7.7B | $5.2B |
| Cash & Equiv.Liquid assets | $3.7B | $1.9B |
| Total DebtShort + long-term debt | $11.4B | $7.1B |
| 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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -10.9% | +4.4% |
| 1-Year ReturnPast 12 months | -17.2% | +42.1% |
| 3-Year ReturnCumulative with dividends | +44.1% | +105.0% |
| 5-Year ReturnCumulative with dividends | +2.6% | +63.3% |
| 10-Year ReturnCumulative with dividends | +1628.4% | +307.1% |
| CAGR (3Y)Annualised 3-year return | +12.9% | +27.0% |
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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.88x | 0.57x |
| 52-Week HighHighest price in past year | $2645.22 | $101.15 |
| 52-Week LowLowest price in past year | $1665.00 | $58.71 |
| % of 52W HighCurrent price vs 52-week peak | +66.4% | +89.8% |
| RSI (14)Momentum oscillator 0–100 | 28.7 | 51.9 |
| Avg Volume (50D)Average daily shares traded | 418K | 4.1M |
Analyst Outlook
Wall Street rates MELI as "Buy" and EBAY as "Hold". 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 | MELIMercadoLibre, Inc. | EBAYeBay Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $2810.00 | $99.13 |
| # AnalystsCovering analysts | 33 | 68 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | 0 | 7 |
| Dividend / ShareAnnual DPS | — | $1.15 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +6.1% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | 100 | 334.4 | +234.4% |
| eBay Inc. (EBAY) | 100 | 260.79 | +160.8% |
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 |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | $844M | $28.9B | +3321.7% |
| eBay Inc. (EBAY) | $9.3B | $11.1B | +19.4% |
MercadoLibre, Inc.'s revenue grew from $844M (2016) to $28.9B (2025) — a 48.1% CAGR. eBay Inc.'s revenue grew from $9.3B (2016) to $11.1B (2025) — a 2.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | 16.1% | 6.9% | -57.2% |
| eBay Inc. (EBAY) | 78.1% | 18.3% | -76.6% |
MercadoLibre, Inc.'s net margin went from 16% (2016) to 7% (2025). eBay Inc.'s net margin went from 78% (2016) to 18% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | 88.8 | 51.1 | -42.5% |
| eBay Inc. (EBAY) | 11 | 20.1 | +82.7% |
MercadoLibre, Inc. has traded in a 45x–89x P/E range over 4 years; current trailing P/E is ~45x. eBay Inc. has traded in a 3x–20x P/E range over 7 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| MercadoLibre, Inc. (MELI) | 3.09 | 39.39 | +1174.8% |
| eBay Inc. (EBAY) | 6.35 | 4.34 | -31.7% |
MercadoLibre, Inc.'s EPS grew from $3.09 (2016) to $39.39 (2025) — a 33% CAGR. eBay Inc.'s EPS grew from $6.35 (2016) to $4.34 (2025) — a -4% CAGR.
Chart 6Free Cash Flow — 5 Years
MercadoLibre, Inc. generated $11B FCF in 2025 (+2930% vs 2021). eBay Inc. generated $1B FCF in 2025 (-33% vs 2021).
MELI vs EBAY: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MELI or EBAY 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 — MELI or EBAY?
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 — MELI or EBAY?
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 — MELI or EBAY?
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 — MELI or EBAY?
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 MELI or EBAY 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 — MELI or EBAY?
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 MELI or EBAY 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 MELI and EBAY?
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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