Groupon (GRPN) vs. Its Competitors Head to Head Analysis

Groupon (NASDAQ:GRPN) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it contrast to its peers? We will compare Groupon to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Groupon	$498.42 million	-$83.52 million	-4.97
Groupon Competitors	$54.97 billion	$1.71 billion	15.04

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

Analyst Ratings

This is a breakdown of recent ratings for Groupon and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groupon	2	0	1	0	1.67
Groupon Competitors	1406	5409	10891	311	2.56

Groupon presently has a consensus price target of $23.00, indicating a potential upside of 48.81%. As a group, “Broadline Retail” companies have a potential upside of 21.10%. Given Groupon’s higher possible upside, equities analysts plainly believe Groupon is more favorable than its peers.

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	-25.26%	N/A	-20.28%
Groupon Competitors	-3.01%	-38.59%	-2.58%

Institutional & Insider Ownership

90.0% of Groupon shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 36.6% of Groupon shares are owned by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Groupon has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Groupon’s peers have a beta of 1.74, meaning that their average stock price is 74% more volatile than the S&P 500.

Summary

Groupon peers beat Groupon on 9 of the 13 factors compared.

Groupon Company Profile

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.