Financial Analysis: TriNet Group (TNET) vs. Mercadolibre (MELI)
TriNet Group (NYSE:TNET) and Mercadolibre (NASDAQ:MELI) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Risk & Volatility
TriNet Group has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500. Comparatively, Mercadolibre has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.
86.6% of TriNet Group shares are held by institutional investors. Comparatively, 91.1% of Mercadolibre shares are held by institutional investors. 37.0% of TriNet Group shares are held by company insiders. Comparatively, 0.3% of Mercadolibre shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for TriNet Group and Mercadolibre, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TriNet Group presently has a consensus target price of $56.36, indicating a potential downside of 7.61%. Mercadolibre has a consensus target price of $449.83, indicating a potential downside of 8.34%. Given TriNet Group’s higher possible upside, equities research analysts plainly believe TriNet Group is more favorable than Mercadolibre.
This table compares TriNet Group and Mercadolibre’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares TriNet Group and Mercadolibre’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriNet Group||$3.50 billion||1.22||$192.00 million||$2.57||23.74|
|Mercadolibre||$1.44 billion||15.41||-$36.58 million||($0.82)||-598.50|
TriNet Group has higher revenue and earnings than Mercadolibre. Mercadolibre is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
TriNet Group beats Mercadolibre on 9 of the 14 factors compared between the two stocks.
About TriNet Group
TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefit law compliance; and other services. It serves clients in various industries, including technology, life sciences, not-for-profit, professional services, financial services, property management, retail, manufacturing, and hospitality. The company markets its solutions through its sales representatives. TriNet Group, Inc. was founded in 1988 and is headquartered in Dublin, California.
MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates MercadoLibre Marketplace, an automated online commerce platform that enables businesses and individuals to list merchandise and conduct sales and purchases online; and MercadoPago FinTech, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, and allows merchants to process transactions via their Websites and mobile apps, as well as in their brick-and-mortar stores through QR and mobile points of sale. The company also offers MercadoFondo, an asset management product; and MercadoCredito, a lending solution. In addition, it provides MercadoEnvios logistics solution, which offers its platform technological and operational integration services with third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. Further, the company provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, and real estate and services outside the Marketplace platform. Additionally, it offers MercadoLibre Advertising platform, which enables retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing solutions. The company also provides MercadoShops, a software-as-a-service hosted online store solution that enables users to set-up, manage, and promote their own Webstores. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
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