Financial Comparison: MercadoLibre (NASDAQ:MELI) and OptimizeRx (NASDAQ:OPRX)

OptimizeRx (NASDAQ:OPRX) and MercadoLibre (NASDAQ:MELI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for OptimizeRx and MercadoLibre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	0	3	6	0	2.67
MercadoLibre	0	1	14	2	3.06

OptimizeRx currently has a consensus price target of $9.06, indicating a potential upside of 63.29%. MercadoLibre has a consensus price target of $2,244.69, indicating a potential upside of 16.78%. Given OptimizeRx’s higher probable upside, research analysts clearly believe OptimizeRx is more favorable than MercadoLibre.

Insider & Institutional Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 87.6% of MercadoLibre shares are owned by institutional investors. 6.1% of OptimizeRx shares are owned by company insiders. Comparatively, 0.1% of MercadoLibre shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

OptimizeRx has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Profitability

This table compares OptimizeRx and MercadoLibre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	-27.41%	-4.92%	-3.41%
MercadoLibre	7.57%	40.71%	7.24%

Valuation & Earnings

This table compares OptimizeRx and MercadoLibre”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$71.52 million	1.43	-$17.57 million	($1.33)	-4.17
MercadoLibre	$14.47 billion	6.73	$987.00 million	$28.34	67.83

MercadoLibre has higher revenue and earnings than OptimizeRx. OptimizeRx is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.

Summary

MercadoLibre beats OptimizeRx on 13 of the 15 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About MercadoLibre

MercadoLibre, Inc. operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, 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, as well as allows users to transfer money through their websites or on the apps. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the web; and Mercado Shops, an online storefronts solution that enables users to set-up, manage, and promote their own digital stores. The company was incorporated in 1999 and is headquartered in Montevideo, Uruguay.