Groupon (NASDAQ:GRPN – Get Free Report) and Bed Bath & Beyond (NYSE:BBBY – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares Groupon and Bed Bath & Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -20.78% | -717.37% | -16.40% |
| Bed Bath & Beyond | -5.76% | -27.60% | -12.99% |
Earnings & Valuation
This table compares Groupon and Bed Bath & Beyond”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $498.44 million | 1.23 | -$83.52 million | ($2.61) | -6.21 |
| Bed Bath & Beyond | $1.04 billion | 0.43 | -$84.62 million | ($0.95) | -6.41 |
Groupon has higher earnings, but lower revenue than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Groupon, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.1% of Groupon shares are owned by institutional investors. Comparatively, 76.3% of Bed Bath & Beyond shares are owned by institutional investors. 36.6% of Groupon shares are owned by company insiders. Comparatively, 1.8% of Bed Bath & Beyond shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Groupon has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Groupon and Bed Bath & Beyond, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 1 | 3 | 0 | 2.17 |
| Bed Bath & Beyond | 1 | 3 | 1 | 0 | 2.00 |
Groupon presently has a consensus target price of $28.67, indicating a potential upside of 76.97%. Bed Bath & Beyond has a consensus target price of $8.00, indicating a potential upside of 31.47%. Given Groupon’s stronger consensus rating and higher possible upside, equities analysts plainly believe Groupon is more favorable than Bed Bath & Beyond.
Summary
Groupon beats Bed Bath & Beyond on 8 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 Bed Bath & Beyond
Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.
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