Analyzing Mercadolibre (NASDAQ:MELI) and Tabula Rasa HealthCare (NASDAQ:TRHC)
Mercadolibre (NASDAQ:MELI) and Tabula Rasa HealthCare (NASDAQ:TRHC) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Mercadolibre has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Tabula Rasa HealthCare has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
This table compares Mercadolibre and Tabula Rasa HealthCare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mercadolibre||$1.44 billion||21.12||-$36.58 million||($0.82)||-751.78|
|Tabula Rasa HealthCare||$204.27 million||4.79||-$47.27 million||$0.34||130.94|
Mercadolibre has higher revenue and earnings than Tabula Rasa HealthCare. Mercadolibre is trading at a lower price-to-earnings ratio than Tabula Rasa HealthCare, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Mercadolibre and Tabula Rasa HealthCare, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tabula Rasa HealthCare||0||2||7||1||2.90|
Mercadolibre currently has a consensus price target of $491.08, suggesting a potential downside of 20.34%. Tabula Rasa HealthCare has a consensus price target of $84.23, suggesting a potential upside of 89.20%. Given Tabula Rasa HealthCare’s stronger consensus rating and higher probable upside, analysts clearly believe Tabula Rasa HealthCare is more favorable than Mercadolibre.
Institutional & Insider Ownership
84.7% of Mercadolibre shares are held by institutional investors. Comparatively, 86.7% of Tabula Rasa HealthCare shares are held by institutional investors. 0.4% of Mercadolibre shares are held by insiders. Comparatively, 14.0% of Tabula Rasa HealthCare shares are held by 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 table compares Mercadolibre and Tabula Rasa HealthCare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tabula Rasa HealthCare||-18.15%||4.22%||1.74%|
Tabula Rasa HealthCare beats Mercadolibre on 9 of the 14 factors compared between the two stocks.
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.
About Tabula Rasa HealthCare
Tabula Rasa HealthCare, Inc. operates as a healthcare technology company in the field of medication safety in the United States. The company's proprietary Medication Risk Mitigation Matrix delivers a multi-drug review, which identifies medication-related risks. Its cloud-based software applications include EireneRx, a medication decision-support and e-prescribing platform to access patients' medication-related information; and MedWise that provides medication decision support components for clients seeking to manage their medication risk and improve medication outcomes, and patient relationships by enhancing their existing systems. The company's cloud-based software applications also comprise RxCompanion, a medication therapy management software platform for the identification and resolution of medication and other health related problems; TruChart, an electronic health record (EHR) system for Programs of All-Inclusive Care for the Elderly (PACE) programs; and PACElogic, which deliver real-time sharable workflows comprising EHR, customer relationship management, claims adjudication, electronic data interchange, care management, coordination, planning, integration with community-based providers, and various Federal and State required reporting for PACE organizations and small health plans. Tabula Rasa HealthCare, Inc. also offers clinical pharmacist collaboration, prescription fulfillment and reminder packaging, and pharmacy cost management services, as well as health plan management services, including risk adjustment and third party administrator services. As of December 31, 2018, it served 224 healthcare organizations. The company offers its cloud-based software solutions to prescribers, pharmacists, and healthcare organizations for managing the medication-related needs of their patients. Tabula Rasa HealthCare, Inc. was founded in 2009 and is headquartered in Moorestown, New Jersey.
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