Mercadolibre (NASDAQ:MELI) and Artelo Biosciences (NASDAQ:ARTL) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Profitability
This table compares Mercadolibre and Artelo Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mercadolibre | -5.87% | -1.29% | -0.55% |
| Artelo Biosciences | N/A | -247.40% | -132.23% |
Analyst Ratings
This is a summary of recent recommendations for Mercadolibre and Artelo Biosciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercadolibre | 1 | 4 | 11 | 0 | 2.63 |
| Artelo Biosciences | 0 | 0 | 1 | 0 | 3.00 |
Mercadolibre currently has a consensus target price of $657.20, indicating a potential upside of 8.13%. Artelo Biosciences has a consensus target price of $8.00, indicating a potential upside of 206.51%. Given Artelo Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Artelo Biosciences is more favorable than Mercadolibre.
Insider & Institutional Ownership
81.0% of Mercadolibre shares are held by institutional investors. Comparatively, 0.6% of Artelo Biosciences shares are held by institutional investors. 0.4% of Mercadolibre shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Mercadolibre and Artelo Biosciences’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mercadolibre | $1.44 billion | 20.99 | -$36.58 million | ($0.82) | -741.22 |
| Artelo Biosciences | N/A | N/A | -$2.17 million | N/A | N/A |
Artelo Biosciences has lower revenue, but higher earnings than Mercadolibre.
Summary
Mercadolibre beats Artelo Biosciences on 6 of the 10 factors compared between the two stocks.
About Mercadolibre
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 Artelo Biosciences
Artelo Biosciences, Inc., an ethical biopharmaceutical company, focuses on developing, licensing, and commercializing cannabinoid therapeutic treatments. Its products pipeline includes ART12.11, a cannabidiol composition for the treatment of inflammatory bowel disease, stroke, and rare/orphan diseases; ART26.12, an endocannabinoid transport protein (FABP5) inhibitor for the treatment of breast cancer, prostate cancer, and neuropathic and nociceptive pain; and ART27.13 for the treatment of cancer and cachexia. The company was formerly known as Reactive Medical, Inc. and changed its name to Artelo Biosciences, Inc. in April 2017. Artelo Biosciences, Inc. was founded in 2011 and is based in La Jolla, California.
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