MercadoLibre Overtakes Coupang in Quarterly Revenue, Seen as Better Investment

In a direct comparison of the two e-commerce giants MercadoLibre and Coupang, most analysts' choice in October 2026 is clear-cut: MercadoLibre is the better investment. The Latin American company convinces with higher growth, better profitability and greater market reach – despite volatile economic conditions in its home markets.

Revenue Trend Shifts in MercadoLibre's Favour

MercadoLibre set a significant milestone in early October 2026: for the first time, the company overtook Coupang in quarterly revenue. This milestone marks a shift in the balance of power between the Latin American market leader and its South Korean counterpart. While MercadoLibre continues its growth trajectory, Coupang is experiencing a marked slowdown: in the second quarter of 2026, the Korea specialist's revenue grew by only 4 percent compared to the previous year – a drastic decline from the 14 percent growth Coupang achieved for the full year 2025.

Analysts see in this development a clear indication of the different dynamics in the two markets. MercadoLibre addresses more than 650 million consumers in Latin America, where e-commerce penetration is significantly below North American levels. Coupang focuses primarily on South Korea and is only expanding into Taiwan – markets with already higher digital saturation.

Business Models: Marketplace versus Warehousing

The two groups' strategic approaches differ fundamentally. Coupang operates a capital-intensive model with its own warehousing and logistics infrastructure, requiring substantial investments in warehouses, distribution centres and fleets. MercadoLibre, by contrast, relies on a marketplace model in which third-party sellers sell their goods through the platform. This asset-light concept enables higher margins with lower capital expenditure.

In addition, MercadoLibre has a second pillar: the financial services division, which encompasses payment processing, lending and digital wallets, contributing substantially to diversification. Coupang lacks a comparable ecosystem in the financial sector and remains largely focused on pure e-commerce.

Valuation: Lower P/S Ratio Not Enough

At first glance, Coupang appears attractively valued: its price-to-sales ratio (P/S) is below that of MercadoLibre. However, both stocks exhibit a high forward price-to-earnings ratio (Forward P/E) based on future earnings estimates. Analysts nevertheless weight profitability metrics more heavily in overall valuations – and here MercadoLibre leads.

According to experts, MercadoLibre's higher valuation is justified by superior growth dynamics, higher margins and a larger customer base. For patient investors, the company offers a better opportunity to benefit from still-untapped market potential in Latin America.

Risk Factors: Data Breach versus Currency Crises

Both companies carry specific risks. Coupang is dealing with the fallout from a severe data breach in November 2025 that affected 33 million user accounts. The company also faces strict South Korean labour and competition regulations, which have resulted in ongoing investigations and potential legal consequences for management. Competitive pressure from local rivals and global players such as Amazon further intensifies the situation.

MercadoLibre, in turn, operates in markets with high inflation and recurring currency devaluations – particularly in Argentina. This macroeconomic volatility complicates planning and can depress revenues when converting to US dollars. However, the company has historically demonstrated its ability to adapt to such conditions.

Customer Base and Scaling Potential

The scale of addressable markets clearly favours MercadoLibre. Whilst Coupang operates in a largely saturated South Korean market with around 52 million inhabitants, MercadoLibre is tapping into a continent with more than twelve times as many potential customers. E-commerce penetration in Latin America still lags significantly behind developed markets – a circumstance that opens considerable growth potential for MercadoLibre.

Analysts point out that MercadoLibre not only grows faster but also gains market share at a rapid pace. This combination of growth velocity and market size makes the company the preferred choice for long-term investors.

Analyst Verdict: Clear Favourite Despite Higher Valuation

In direct comparisons between the two stocks, analysts repeatedly favour MercadoLibre. The valuation rests on three pillars: superior revenue growth, higher profitability and greater customer potential. Despite Coupang's lower P/S valuation, MercadoLibre's overall performance carries more weight.

The slowdown in Coupang's growth over the course of 2026 confirms the scepticism of many observers regarding the further scalability of its business model. MercadoLibre, by contrast, shows no signs of a similar slowdown and benefits from the still-low digital penetration of its markets.

For investors who must choose between the two regional e-commerce leaders, the recommendation in October 2026 is unequivocal: MercadoLibre offers the better combination of growth prospects, business model and market position – despite macroeconomic challenges in Latin America.