PANW vs. MELI

Last updated Jun 9, 2026

PANW (Palo Alto Networks, Inc.) and MELI (MercadoLibre, Inc.) are both stocks. PANW operates in Software - Infrastructure (Technology), while MELI operates in Internet Retail (Consumer Cyclical). Over the past 10 years, PANW returned 28.39%/yr vs 28.28%/yr for MELI. At a 0.38 correlation, their price movements are largely independent.

Performance

PANW vs. MELI - Performance Comparison

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

Returns By Period

In the year-to-date period, PANW achieves a 44.59% return, which is significantly higher than MELI's -19.97% return. Both investments have delivered pretty close results over the past 10 years, with PANW having a 28.39% annualized return and MELI not far behind at 28.28%.

PANW

• 1D: -2.10%
• 1M: 28.12%
• YTD: 44.59%
• 6M: 36.33%
• 1Y: 33.43%
• 3Y*: 34.26%
• 5Y*: 35.30%
• 10Y*: 28.39%

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%

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

PANW vs. MELI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PANW Palo Alto Networks, Inc.	44.59%	1.23%	23.41%	111.32%	-24.81%	56.66%	53.68%	22.78%	29.95%	15.91%
MELI MercadoLibre, Inc.	-19.97%	18.46%	8.20%	85.71%	-37.24%	-19.51%	192.90%	95.30%	-6.93%	101.99%

Correlation

The correlation between PANW and MELI is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Jul 23, 2012	0.38

The correlation between PANW and MELI shifts across timeframes, from 0.19 (1 year) to 0.41 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap PANW : $198.15B MELI : $81.72B
EPS PANW : $1.17 MELI : $37.87
PE Ratio PANW : 227.13 MELI : 42.56
PEG Ratio PANW : 0.02 MELI : 0.25
PS Ratio PANW : 18.05 MELI : 2.66
PB Ratio PANW : 7.16 MELI : 11.22
Total Revenue (TTM) PANW : $10.61B MELI : $30.67B
Gross Profit (TTM) PANW : $7.63B MELI : $13.95B
EBITDA (TTM) PANW : $1.33B MELI : $3.11B

Return for Risk

PANW vs. MELI — Risk / Return Rank

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

PANW

PANW Risk / Return Rank: 64
PANW Sharpe Ratio Rank: 70
PANW Sortino Ratio Rank: 64
PANW Omega Ratio Rank: 63
PANW Calmar Ratio Rank: 62
PANW Martin Ratio Rank: 62

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

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.

PANW vs. MELI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Palo Alto Networks, Inc. (PANW) and MercadoLibre, Inc. (MELI). 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.

	PANW	MELI	Difference
Sharpe ratio: Return per unit of total volatility	0.87	-0.89	+1.77
Sortino ratio: Return per unit of downside risk	1.35	-1.14	+2.49
Omega ratio: Gain probability vs. loss probability	1.18	0.85	+0.33
Calmar ratio: Return relative to maximum drawdown	0.93	-0.86	+1.79
Martin ratio: Return relative to average drawdown	2.12	-1.54	+3.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PANW vs. MELI - Sharpe Ratio Comparison

The current PANW Sharpe Ratio is 0.87, which is higher than the MELI Sharpe Ratio of -0.89. The chart below compares the historical Sharpe Ratios of PANW and MELI, 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

	PANW	MELI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.87	-0.89	+1.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.85	0.08	+0.77
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	0.58	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.44	+0.26

Drawdowns

PANW vs. MELI - Drawdown Comparison

The maximum PANW drawdown since its inception was -47.98%, smaller than the maximum MELI drawdown of -89.49%. Use the drawdown chart below to compare losses from any high point for PANW and MELI.

Drawdown Indicators

	PANW	MELI	Difference
Max Drawdown Largest peak-to-trough decline	-47.98%	-89.49%	+41.51%
Max Drawdown (1Y) Largest decline over 1 year	-36.01%	-40.82%	+4.81%
Max Drawdown (3Y) Largest decline over 3 years	-36.01%	-40.82%	+4.81%
Max Drawdown (5Y) Largest decline over 5 years	-36.01%	-68.64%	+32.63%
Max Drawdown (10Y) Largest decline over 10 years	-47.98%	-69.12%	+21.14%
Current Drawdown Current decline from peak	-11.37%	-38.32%	+26.95%
Average Drawdown Average peak-to-trough decline	-14.69%	-23.58%	+8.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.82%	22.74%	-6.92%

Volatility

PANW vs. MELI - Volatility Comparison

Palo Alto Networks, Inc. (PANW) and MercadoLibre, Inc. (MELI) have volatilities of 17.10% and 17.04%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PANW	MELI	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.10%	17.04%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	31.83%	30.13%	+1.70%
Volatility (1Y) Calculated over the trailing 1-year period	38.54%	39.42%	-0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	41.65%	49.68%	-8.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.59%	48.89%	-10.30%

Dividends

PANW vs. MELI - Dividend Comparison

Neither PANW nor MELI 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%
PANW Palo Alto Networks, 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

PANW vs. MELI - Profitability Comparison

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

PANW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a gross profit of 2.03B and revenue of 3.00B. Therefore, the gross margin over that period was 67.6%.

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%.

PANW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported an operating income of -186.00M and revenue of 3.00B, resulting in an operating margin of -6.2%.

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%.

PANW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a net income of -177.00M and revenue of 3.00B, resulting in a net margin of -5.9%.

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%.

Frequently Asked Questions

Can I hold both PANW and MELI in my portfolio?

PANW and MELI have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PANW or MELI?

PANW has higher volatility (17.10%) compared to MELI (17.04%). In terms of maximum drawdown, PANW dropped -47.98% vs MELI's -89.49%.

Which has better risk-adjusted returns?

PANW currently has the higher Sharpe Ratio (0.87 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.