PAGS
PagSeguro Digital Ltd.
Software - Infrastructure
Market Cap$1.78B
5Y Perf.-67.2%
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Stock Comparison
PAGS vs MELI
Revenue, margins, valuation, and 5-year total return — side by side.
MELI
MercadoLibre, Inc.
Specialty Retail
Market Cap$93.34B
5Y Perf.+116.2%
PAGS vs MELI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PAGS | MELI |
|---|---|---|
| Industry | Software - Infrastructure | Specialty Retail |
| Market Cap | $1.78B | $93.34B |
| Revenue (TTM) | $19.82B | $28.89B |
| Net Income (TTM) | $2.13B | $2.00B |
| Gross Margin | 50.8% | 44.5% |
| Operating Margin | 37.5% | 11.1% |
| Forward P/E | 1.2x | 38.6x |
| Total Debt | $34.86B | $11.39B |
| Cash & Equiv. | $1.86B | $3.67B |
PAGS vs MELI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PAGS
MELI
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| PagSeguro Digital L… (PAGS) | 100 | 32.8 | -67.2% |
| MercadoLibre, Inc. (MELI) | 100 | 216.2 | +116.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PAGS vs MELI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PAGS leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. MercadoLibre, Inc. is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
PAGS
PagSeguro Digital Ltd.
The Income Pick
PAGS carries the broadest edge in this set and is the clearest fit for income & stability.
- Dividend streak 2 yrs, beta 1.70, yield 4.0%
- Lower P/E (1.2x vs 38.6x)
- 10.7% margin vs MELI's 6.9%
Best for: income & stability
MELI
MercadoLibre, Inc.
The Growth Play
MELI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 39.1%, EPS growth 4.5%, 3Y rev CAGR 38.9%
- 13.4% 10Y total return vs PAGS's -61.7%
- Lower volatility, beta 1.20, current ratio 1.17x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | MELI | 39.1% revenue growth vs PAGS's 5.6% |
| Value | PAGS | Lower P/E (1.2x vs 38.6x) |
| Quality / Margins | PAGS | 10.7% margin vs MELI's 6.9% |
| Stability / Safety | MELI | Beta 1.20 vs PAGS's 1.70, lower leverage |
| Dividends | PAGS | 4.0% yield; 2-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | PAGS | +15.0% vs MELI's -17.4% |
| Efficiency (ROA) | MELI | 5.7% ROA vs PAGS's 3.0%, ROIC 20.8% vs 10.7% |
PAGS vs MELI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
PAGS vs MELI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPAGSLAGGINGMELI
MELIMercadoLibre, Inc.
2leads
PAGSPagSeguro Digital Ltd.
3leads
6 Total Categories
CATEGORYLEADERvs MELIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PAGS4/6
Valuation MetricsMultiples, price ratios, and targets
PAGS6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MELI8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
MELI4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
PAGS1/1
Income & Cash Flow (Last 12 Months)
PAGS leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MELI and PAGS operate at a comparable scale, with $28.9B and $19.8B in trailing revenue. Profitability is closely matched — net margins range from 10.7% (PAGS) to 6.9% (MELI). On growth, MELI holds the edge at +44.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $19.8B | $28.9B |
| EBITDAEarnings before interest/tax | $8.8B | $4.0B |
| Net IncomeAfter-tax profit | $2.1B | $2.0B |
| Free Cash FlowCash after capex | $708M | $10.1B |
| Gross MarginGross profit ÷ Revenue | +50.8% | +44.5% |
| Operating MarginEBIT ÷ Revenue | +37.5% | +11.1% |
| Net MarginNet income ÷ Revenue | +10.7% | +6.9% |
| FCF MarginFCF ÷ Revenue | +3.6% | +35.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.0% | +44.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -8.4% | -12.5% |
PAGS leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
PAGS leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 7.4x trailing earnings, PAGS trades at a 84% valuation discount to MELI's 46.7x P/E. On an enterprise value basis, PAGS's 5.7x EV/EBITDA is more attractive than MELI's 26.8x.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| Market CapShares × price | $1.8B | $93.3B |
| Enterprise ValueMkt cap + debt − cash | $8.5B | $101.1B |
| Trailing P/EPrice ÷ TTM EPS | 7.39x | 46.74x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.18x | 38.60x |
| PEG RatioP/E ÷ EPS growth rate | 0.61x | — |
| EV / EBITDAEnterprise value multiple | 5.75x | 26.79x |
| Price / SalesMarket cap ÷ Revenue | 0.45x | 3.23x |
| Price / BookPrice ÷ Book value/share | 1.05x | 13.83x |
| Price / FCFMarket cap ÷ FCF | 5.64x | 8.66x |
PAGS leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
MELI leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
MELI delivers a 33.7% return on equity — every $100 of shareholder capital generates $34 in annual profit, vs $14 for PAGS. MELI carries lower financial leverage with a 1.69x debt-to-equity ratio, signaling a more conservative balance sheet compared to PAGS's 2.38x. On the Piotroski fundamental quality scale (0–9), PAGS scores 7/9 vs MELI's 5/9, reflecting strong financial health.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +14.4% | +33.7% |
| ROA (TTM)Return on assets | +3.0% | +5.7% |
| ROICReturn on invested capital | +10.7% | +20.8% |
| ROCEReturn on capital employed | +25.6% | +28.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 2.38x | 1.69x |
| Net DebtTotal debt minus cash | $33.0B | $7.7B |
| Cash & Equiv.Liquid assets | $1.9B | $3.7B |
| Total DebtShort + long-term debt | $34.9B | $11.4B |
| Interest CoverageEBIT ÷ Interest expense | 1.50x | 17.53x |
MELI leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
MELI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MELI five years ago would be worth $12,730 today (with dividends reinvested), compared to $2,658 for PAGS. Over the past 12 months, PAGS leads with a +15.0% total return vs MELI's -17.4%. The 3-year compound annual growth rate (CAGR) favors MELI at 12.8% vs PAGS's -0.4% — a key indicator of consistent wealth creation.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +11.6% | -6.7% |
| 1-Year ReturnPast 12 months | +15.0% | -17.4% |
| 3-Year ReturnCumulative with dividends | -1.3% | +43.3% |
| 5-Year ReturnCumulative with dividends | -73.4% | +27.3% |
| 10-Year ReturnCumulative with dividends | -61.7% | +1338.9% |
| CAGR (3Y)Annualised 3-year return | -0.4% | +12.8% |
MELI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — PAGS and MELI each lead in 1 of 2 comparable metrics.
Risk & Volatility
MELI is the less volatile stock with a 1.20 beta — it tends to amplify market swings less than PAGS's 1.70 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PAGS currently trades 84.5% from its 52-week high vs MELI's 69.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.70x | 1.20x |
| 52-Week HighHighest price in past year | $12.32 | $2645.22 |
| 52-Week LowLowest price in past year | $7.74 | $1593.21 |
| % of 52W HighCurrent price vs 52-week peak | +84.5% | +69.6% |
| RSI (14)Momentum oscillator 0–100 | 41.8 | 51.9 |
| Avg Volume (50D)Average daily shares traded | 3.7M | 505K |
Evenly matched — PAGS and MELI each lead in 1 of 2 comparable metrics.
Analyst Outlook
PAGS leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates PAGS as "Buy" and MELI as "Buy". Consensus price targets imply 31.4% upside for MELI (target: $2420) vs 17.0% for PAGS (target: $12). PAGS is the only dividend payer here at 3.95% yield — a key consideration for income-focused portfolios.
| Metric | PAGSPagSeguro Digital… | MELIMercadoLibre, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $12.18 | $2420.00 |
| # AnalystsCovering analysts | 24 | 33 |
| Dividend YieldAnnual dividend ÷ price | +4.0% | — |
| Dividend StreakConsecutive years of raises | 2 | 0 |
| Dividend / ShareAnnual DPS | $2.03 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.0% |
PAGS leads this category, winning 1 of 1 comparable metric.
Key Takeaway
PAGS leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). MELI leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Best OverallPagSeguro Digital Ltd. (PAGS)Leads 3 of 6 categories
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PAGS vs MELI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PAGS or MELI a better buy right now?
For growth investors, MercadoLibre, Inc.
(MELI) is the stronger pick with 39. 1% revenue growth year-over-year, versus 5. 6% for PagSeguro Digital Ltd. (PAGS). PagSeguro Digital Ltd. (PAGS) offers the better valuation at 7. 4x trailing P/E (1. 2x forward), making it the more compelling value choice. Analysts rate PagSeguro Digital Ltd. (PAGS) a "Buy" — based on 24 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 — PAGS or MELI?
On trailing P/E, PagSeguro Digital Ltd.
(PAGS) is the cheapest at 7. 4x versus MercadoLibre, Inc. at 46. 7x. On forward P/E, PagSeguro Digital Ltd. is actually cheaper at 1. 2x.
03Which is the better long-term investment — PAGS or MELI?
Over the past 5 years, MercadoLibre, Inc.
(MELI) delivered a total return of +27. 3%, compared to -73. 4% for PagSeguro Digital Ltd. (PAGS). Over 10 years, the gap is even starker: MELI returned +1339% versus PAGS's -61. 7%. 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 — PAGS or MELI?
By beta (market sensitivity over 5 years), MercadoLibre, Inc.
(MELI) is the lower-risk stock at 1. 20β versus PagSeguro Digital Ltd. 's 1. 70β — meaning PAGS is approximately 41% more volatile than MELI relative to the S&P 500. On balance sheet safety, MercadoLibre, Inc. (MELI) carries a lower debt/equity ratio of 169% versus 2% for PagSeguro Digital Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — PAGS or MELI?
By revenue growth (latest reported year), MercadoLibre, Inc.
(MELI) is pulling ahead at 39. 1% versus 5. 6% for PagSeguro Digital Ltd. (PAGS). On earnings-per-share growth, the picture is similar: PagSeguro Digital Ltd. grew EPS 5. 1% year-over-year, compared to 4. 5% for MercadoLibre, Inc.. Over a 3-year CAGR, MELI leads at 38. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PAGS or MELI?
PagSeguro Digital Ltd.
(PAGS) is the more profitable company, earning 10. 7% net margin versus 6. 9% for MercadoLibre, Inc. — meaning it keeps 10. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PAGS leads at 37. 5% versus 11. 1% for MELI. At the gross margin level — before operating expenses — PAGS leads at 50. 6%, 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.
07Is PAGS or MELI more undervalued right now?
On forward earnings alone, PagSeguro Digital Ltd.
(PAGS) trades at 1. 2x forward P/E versus 38. 6x for MercadoLibre, Inc. — 37. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MELI: 31. 4% to $2420. 00.
08Which pays a better dividend — PAGS or MELI?
In this comparison, PAGS (4.
0% yield) pays a dividend. MELI does not pay a meaningful dividend and should not be held primarily for income.
09Is PAGS 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 1. 20), +1339% 10Y return). PagSeguro Digital Ltd. (PAGS) carries a higher beta of 1. 70 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MELI: +1339%, PAGS: -61. 7%), 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.
10What are the main differences between PAGS and MELI?
These companies operate in different sectors (PAGS (Technology) and MELI (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: PAGS is a small-cap deep-value stock; MELI is a mid-cap high-growth stock. PAGS 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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Revenue Growth>
%
(PAGS: 6.0% · MELI: 44.6%)Net Margin>
%
(PAGS: 10.7% · MELI: 6.9%)P/E Ratio<
x
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