Groupon (NASDAQ:GRPN) versus Savers Value Village (NYSE:SVV) Head-To-Head Comparison

Groupon (NASDAQ:GRPN) and Savers Value Village (NYSE:SVV) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Profitability

This table compares Groupon and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groupon	-25.26%	N/A	-20.28%
Savers Value Village	1.42%	14.58%	3.12%

Volatility and Risk

Groupon has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Groupon and Savers Value Village, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groupon	2	1	1	0	1.75
Savers Value Village	1	3	4	0	2.38

Groupon presently has a consensus price target of $26.00, suggesting a potential upside of 42.08%. Savers Value Village has a consensus price target of $14.00, suggesting a potential upside of 42.35%. Given Savers Value Village’s stronger consensus rating and higher probable upside, analysts plainly believe Savers Value Village is more favorable than Groupon.

Institutional and Insider Ownership

90.1% of Groupon shares are held by institutional investors. Comparatively, 98.8% of Savers Value Village shares are held by institutional investors. 36.6% of Groupon shares are held by insiders. Comparatively, 3.5% of Savers Value Village shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Groupon and Savers Value Village”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groupon	$497.41 million	1.50	-$83.52 million	($3.11)	-5.88
Savers Value Village	$1.68 billion	0.90	$22.64 million	$0.16	61.47

Savers Value Village has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Summary

Savers Value Village beats Groupon on 12 of the 14 factors compared between the two stocks.

About Groupon

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.