Financial Comparison: Groupon (GRPN) vs. Its Competitors

Groupon (NASDAQ: GRPN) is one of 191 publicly-traded companies in the “NONFOOD RETAIL/WH” industry, but how does it contrast to its peers? We will compare Groupon to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

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This is a breakdown of recent recommendations and price targets for Groupon and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Groupon 2 9 6 0 2.24
Groupon Competitors 2110 11431 15206 588 2.49

Groupon currently has a consensus target price of $5.00, suggesting a potential upside of 12.55%. As a group, “NONFOOD RETAIL/WH” companies have a potential upside of 5.28%. Given Groupon’s higher probable upside, equities analysts clearly believe Groupon is more favorable than its peers.

Earnings and Valuation

This table compares Groupon and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Groupon $2.84 billion $14.04 million 222.11
Groupon Competitors $8.90 billion $395.30 million -632.01

Groupon’s peers have higher revenue and earnings than Groupon. Groupon is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Groupon has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Groupon’s peers have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.

Profitability

This table compares Groupon and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Groupon 0.49% 0.22% 0.03%
Groupon Competitors -0.23% -208.02% 3.81%

Institutional & Insider Ownership

63.6% of Groupon shares are held by institutional investors. Comparatively, 68.6% of shares of all “NONFOOD RETAIL/WH” companies are held by institutional investors. 23.4% of Groupon shares are held by company insiders. Comparatively, 16.3% of shares of all “NONFOOD RETAIL/WH” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Groupon peers beat Groupon on 7 of the 13 factors compared.

About Groupon

Groupon, Inc. operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World). It offers goods and services in three primary categories: Local Deals (Local), Groupon Goods (Goods) and Groupon Getaways (Travel). Its Local category includes offerings from local and national merchants, as well as local events. Its Goods category offers customers the ability to find deals on merchandise across various product lines, including electronics, sporting goods, jewelry, toys, household items and apparel. Through its Travel category, it features travel offers at both discounted and market rates, including hotels, airfare and package deals covering both domestic and international travel.

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