Head-To-Head Analysis: iPower (NASDAQ:IPW) versus Coupang (NYSE:CPNG)

Coupang (NYSE:CPNG) and iPower (NASDAQ:IPW) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

83.7% of Coupang shares are owned by institutional investors. Comparatively, 2.7% of iPower shares are owned by institutional investors. 12.8% of Coupang shares are owned by company insiders. Comparatively, 0.7% of iPower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Coupang and iPower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coupang	-2.16%	-8.77%	-2.00%
iPower	-23.43%	-26.96%	-14.85%

Volatility & Risk

Coupang has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, iPower has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500.

Earnings and Valuation

This table compares Coupang and iPower”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$35.46 billion	0.73	$208.00 million	($0.43)	-33.64
iPower	$66.14 million	0.03	-$4.97 million	($480.49)	-0.00

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Coupang and iPower, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	2	4	5	0	2.27
iPower	1	0	0	0	1.00

Coupang currently has a consensus target price of $24.06, suggesting a potential upside of 66.36%. Given Coupang’s stronger consensus rating and higher probable upside, analysts clearly believe Coupang is more favorable than iPower.

Summary

Coupang beats iPower on 12 of the 14 factors compared between the two stocks.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

About iPower

iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.