MELI vs. ZS

Last updated Jun 9, 2026

MELI (MercadoLibre, Inc.) and ZS (Zscaler, Inc.) are both stocks. MELI operates in Internet Retail (Consumer Cyclical), while ZS operates in Software - Infrastructure (Technology). Over the past 5 years, MELI returned 4.13%/yr vs -7.99%/yr for ZS. At a 0.46 correlation, their price movements are largely independent.

Performance

MELI vs. ZS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MercadoLibre, Inc. (MELI) and Zscaler, Inc. (ZS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MELI achieves a -19.97% return, which is significantly higher than ZS's -42.54% 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%

ZS

• 1D: -1.17%
• 1M: -15.04%
• YTD: -42.54%
• 6M: -47.22%
• 1Y: -57.35%
• 3Y*: -5.02%
• 5Y*: -7.99%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MELI vs. ZS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
MELI MercadoLibre, Inc.	-19.97%	18.46%	8.20%	85.71%	-37.24%	-19.51%	192.90%	95.30%	-22.62%
ZS Zscaler, Inc.	-42.54%	24.67%	-18.57%	98.00%	-65.18%	60.90%	329.48%	18.59%	18.82%

Correlation

The correlation between MELI and ZS is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (All Time) Calculated using the full available price history since Mar 19, 2018	0.46

Over the past year, the correlation between MELI and ZS has dropped to 0.22 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.

Fundamentals

Market Cap MELI : $81.72B ZS : $20.78B
EPS MELI : $37.87 ZS : -$0.49
PS Ratio MELI : 2.66 ZS : 6.47
PB Ratio MELI : 11.22 ZS : 8.78
Total Revenue (TTM) MELI : $30.67B ZS : $3.17B
Gross Profit (TTM) MELI : $13.95B ZS : $2.43B
EBITDA (TTM) MELI : $3.11B ZS : $69.08M

Return for Risk

MELI vs. ZS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MELI

MELI Risk / Return Rank: 8
MELI Sharpe Ratio Rank: 7
MELI Sortino Ratio Rank: 10
MELI Omega Ratio Rank: 9
MELI Calmar Ratio Rank: 8
MELI Martin Ratio Rank: 5

ZS

ZS Risk / Return Rank: 6
ZS Sharpe Ratio Rank: 5
ZS Sortino Ratio Rank: 7
ZS Omega Ratio Rank: 5
ZS Calmar Ratio Rank: 7
ZS Martin Ratio Rank: 4

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MELI vs. ZS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MercadoLibre, Inc. (MELI) and Zscaler, Inc. (ZS). 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	ZS	Difference
Sharpe ratio: Return per unit of total volatility	-0.89	-0.98	+0.09
Sortino ratio: Return per unit of downside risk	-1.14	-1.36	+0.21
Omega ratio: Gain probability vs. loss probability	0.85	0.79	+0.06
Calmar ratio: Return relative to maximum drawdown	-0.86	-0.89	+0.02
Martin ratio: Return relative to average drawdown	-1.54	-1.59	+0.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MELI vs. ZS - Sharpe Ratio Comparison

The current MELI Sharpe Ratio is -0.89, which is comparable to the ZS Sharpe Ratio of -0.98. The chart below compares the historical Sharpe Ratios of MELI and ZS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MELI	ZS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.89	-0.98	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	-0.14	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.31	+0.13

Drawdowns

MELI vs. ZS - Drawdown Comparison

The maximum MELI drawdown since its inception was -89.49%, which is greater than ZS's maximum drawdown of -76.41%. Use the drawdown chart below to compare losses from any high point for MELI and ZS.

Drawdown Indicators

	MELI	ZS	Difference
Max Drawdown Largest peak-to-trough decline	-89.49%	-76.41%	-13.08%
Max Drawdown (1Y) Largest decline over 1 year	-40.82%	-64.89%	+24.07%
Max Drawdown (3Y) Largest decline over 3 years	-40.82%	-64.89%	+24.07%
Max Drawdown (5Y) Largest decline over 5 years	-68.64%	-76.41%	+7.77%
Max Drawdown (10Y) Largest decline over 10 years	-69.12%	—	—
Current Drawdown Current decline from peak	-38.32%	-64.95%	+26.63%
Average Drawdown Average peak-to-trough decline	-23.58%	-32.63%	+9.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.74%	36.05%	-13.31%

Volatility

MELI vs. ZS - Volatility Comparison

The current volatility for MercadoLibre, Inc. (MELI) is 17.04%, while Zscaler, Inc. (ZS) has a volatility of 44.44%. This indicates that MELI experiences smaller price fluctuations and is considered to be less risky than ZS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MELI	ZS	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.04%	44.44%	-27.40%
Volatility (6M) Calculated over the trailing 6-month period	30.13%	57.30%	-27.17%
Volatility (1Y) Calculated over the trailing 1-year period	39.42%	58.72%	-19.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.68%	56.10%	-6.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.89%	58.42%	-9.53%

Dividends

MELI vs. ZS - Dividend Comparison

Neither MELI nor ZS has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZS Zscaler, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

MELI vs. ZS - Profitability Comparison

The chart below illustrates the profitability comparison between MercadoLibre, Inc. and Zscaler, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

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%.

ZS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported a gross profit of 657.82M and revenue of 850.48M. Therefore, the gross margin over that period was 77.4%.

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%.

ZS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported an operating income of -29.64M and revenue of 850.48M, resulting in an operating margin of -3.5%.

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%.

ZS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Zscaler, Inc. reported a net income of -13.88M and revenue of 850.48M, resulting in a net margin of -1.6%.

Frequently Asked Questions

Can I hold both MELI and ZS in my portfolio?

MELI and ZS have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MELI or ZS?

ZS has higher volatility (44.44%) compared to MELI (17.04%). In terms of maximum drawdown, MELI dropped -89.49% vs ZS's -76.41%.

Which has better risk-adjusted returns?

MELI currently has the higher Sharpe Ratio (-0.89 vs -0.98), 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.