MELI vs. BABA
MELI (MercadoLibre, Inc.) and BABA (Alibaba Group Holding Limited) are both stocks. Both operate in the Internet Retail industry within the Consumer Cyclical sector. Over the past 10 years, MELI returned 28.28%/yr vs 5.23%/yr for BABA. At a 0.39 correlation, their price movements are largely independent.
Performance
MELI vs. BABA - Performance Comparison
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Returns By Period
In the year-to-date period, MELI achieves a -19.97% return, which is significantly lower than BABA's -18.09% return. Over the past 10 years, MELI has outperformed BABA with an annualized return of 28.28%, while BABA has yielded a comparatively lower 5.23% annualized return.
MELI
- 1D
- 0.26%
- 1M
- -1.26%
- YTD
- -19.97%
- 6M
- -22.81%
- 1Y
- -35.06%
- 3Y*
- 10.08%
- 5Y*
- 4.13%
- 10Y*
- 28.28%
BABA
- 1D
- -0.82%
- 1M
- -14.27%
- YTD
- -18.09%
- 6M
- -24.07%
- 1Y
- 2.28%
- 3Y*
- 13.93%
- 5Y*
- -9.93%
- 10Y*
- 5.23%
MELI vs. BABA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MELI MercadoLibre, Inc. | -19.97% | 18.46% | 8.20% | 85.71% | -37.24% | -19.51% | 192.90% | 95.30% | -6.93% | 101.99% |
BABA Alibaba Group Holding Limited | -18.09% | 75.80% | 11.77% | -10.83% | -25.84% | -48.96% | 9.73% | 54.74% | -20.51% | 96.37% |
Correlation
The correlation between MELI and BABA is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.38 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2014 | 0.39 |
Over the past year, the correlation between MELI and BABA has dropped to 0.15 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.
Fundamentals
MELI:
$81.72B
BABA:
$289.95B
MELI:
$37.87
BABA:
$33.90
MELI:
42.56
BABA:
3.54
MELI:
0.25
BABA:
0.16
MELI:
2.66
BABA:
0.36
MELI:
11.22
BABA:
0.27
MELI:
$30.67B
BABA:
$811.51B
MELI:
$13.95B
BABA:
$332.88B
MELI:
$3.11B
BABA:
$112.44B
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Return for Risk
MELI vs. BABA — Risk / Return Rank
MELI
BABA
MELI vs. BABA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for MercadoLibre, Inc. (MELI) and Alibaba Group Holding Limited (BABA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| MELI | BABA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.95 | ||
| Sortino ratioReturn per unit of downside risk | -1.58 | ||
| Omega ratioGain probability vs. loss probability | 0.85 | 1.05 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | -0.86 | 0.06 | -0.92 |
| Martin ratioReturn relative to average drawdown | -1.54 | 0.12 | -1.66 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MELI | BABA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.89 | 0.05 | -0.95 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.08 | -0.19 | +0.28 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.58 | 0.12 | +0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.44 | 0.06 | +0.38 |
Drawdowns
MELI vs. BABA - Drawdown Comparison
The maximum MELI drawdown since its inception was -89.49%, which is greater than BABA's maximum drawdown of -80.09%. Use the drawdown chart below to compare losses from any high point for MELI and BABA.
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Drawdown Indicators
| MELI | BABA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.49% | -80.09% | -9.40% |
Max Drawdown (1Y)Largest decline over 1 year | -40.82% | -36.77% | -4.05% |
Max Drawdown (3Y)Largest decline over 3 years | -40.82% | -36.77% | -4.05% |
Max Drawdown (5Y)Largest decline over 5 years | -68.64% | -72.48% | +3.84% |
Max Drawdown (10Y)Largest decline over 10 years | -69.12% | -80.09% | +10.97% |
Current DrawdownCurrent decline from peak | -38.32% | -60.13% | +21.81% |
Average DrawdownAverage peak-to-trough decline | -23.58% | -37.54% | +13.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 22.74% | 19.02% | +3.72% |
Volatility
MELI vs. BABA - Volatility Comparison
MercadoLibre, Inc. (MELI) has a higher volatility of 17.04% compared to Alibaba Group Holding Limited (BABA) at 13.26%. This indicates that MELI's price experiences larger fluctuations and is considered to be riskier than BABA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MELI | BABA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 17.04% | 13.26% | +3.78% |
Volatility (6M)Calculated over the trailing 6-month period | 30.13% | 29.12% | +1.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 39.42% | 43.79% | -4.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 49.68% | 51.39% | -1.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 48.89% | 43.40% | +5.49% |
Dividends
MELI vs. BABA - Dividend Comparison
MELI has not paid dividends to shareholders, while BABA's dividend yield for the trailing twelve months is around 1.67%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BABA Alibaba Group Holding Limited | 1.67% | 1.36% | 1.96% | 1.29% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MELI MercadoLibre, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.19% | 0.38% | 0.36% |
Financials
MELI vs. BABA - Financials Comparison
This section allows you to compare key financial metrics between MercadoLibre, Inc. and Alibaba Group Holding Limited. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MELI vs. BABA - Profitability Comparison
MELI - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, MercadoLibre, Inc. reported a gross profit of 3.86B and revenue of 7.72B. Therefore, the gross margin over that period was 50.1%.
BABA - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a gross profit of 11.75B and revenue of 35.15B. Therefore, the gross margin over that period was 33.4%.
MELI - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, MercadoLibre, Inc. reported an operating income of 611.00M and revenue of 7.72B, resulting in an operating margin of 7.9%.
BABA - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported an operating income of -135.47M and revenue of 35.15B, resulting in an operating margin of -0.4%.
MELI - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, MercadoLibre, Inc. reported a net income of 417.00M and revenue of 7.72B, resulting in a net margin of 5.4%.
BABA - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a net income of 3.69B and revenue of 35.15B, resulting in a net margin of 10.5%.
Frequently Asked Questions
MELI and BABA have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MELI has higher volatility (17.04%) compared to BABA (13.26%). In terms of maximum drawdown, MELI dropped -89.49% vs BABA's -80.09%.
BABA currently has the higher Sharpe Ratio (0.05 vs -0.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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