MercadoLibre, Inc. vs PDD Holdings Inc., two Internet Retail stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
The number that most separates these two marketplaces is the net margin: PDD keeps almost 23 cents of profit on each sales dollar while MercadoLibre keeps 6. That efficiency lets PDD post a 23% return on equity with no net debt and a 2.43 current ratio, where MercadoLibre leans on a 1.36 debt-to-equity to reach a similar 26%. MercadoLibre's offsetting case is cash conversion, a 14.7% free-cash yield against PDD's 3.2, and a thinner operating margin of 7% to PDD's 22 that still has room to widen. The market reads it the other way around on earnings, paying near 42 times for MercadoLibre and 35 for PDD. The fatter margin is the cheaper stock here.
Comparison updated 2026-06-15.
| Metric | MELI | PDD |
|---|---|---|
| Price | $1852.49 | $85.11 |
| Market cap | $93.9B | $504.7B |
| Sector | Internet Retail | Internet Retail |
| Stage | Growth | Growth |
| P/E | 48.9 | — |
| P/B | 12.90 | — |
| P/S | 2.95 | — |
| EV/EBITDA | 30.4 | — |
| Revenue growth | +41.7% | +45.5% |
| Gross margin | 43.7% | — |
| Operating margin | 6.9% | 21.6% |
| Net margin | 6.0% | 22.7% |
| Return on equity | 26.4% | 23.7% |
| Return on assets | 4.1% | 15.5% |
| Return on invested capital | 12.8% | 18.4% |
| FCF yield | 12.6% | — |
| Dividend yield | 0.0% | — |
| Debt / equity | 1.36 | 0.00 |
| Current ratio | 1.16 | 2.43 |
| Altman Z (solvency) | 2.46 | 8.39 |
| Piotroski F (quality) | 6 / 9 | 5 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.