Groupon (NASDAQ:GRPN) and Mastermind (OTCMKTS:MMND) Head to Head Review

Mastermind (OTCMKTS:MMND) and Groupon (NASDAQ:GRPN) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Mastermind and Groupon’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastermind	$4.54 million	1.14	$690,000.00	N/A	N/A
Groupon	$543.27 million	0.68	-$237.61 million	($5.04)	-2.34

Mastermind has higher earnings, but lower revenue than Groupon.

Volatility & Risk

Mastermind has a beta of -0.41, suggesting that its share price is 141% less volatile than the S&P 500. Comparatively, Groupon has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mastermind and Groupon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastermind	0	0	0	0	N/A
Groupon	2	1	0	0	1.33

Groupon has a consensus target price of $9.00, indicating a potential downside of 23.53%. Given Groupon’s higher probable upside, analysts plainly believe Groupon is more favorable than Mastermind.

Profitability

This table compares Mastermind and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastermind	10.72%	17.91%	13.99%
Groupon	-28.22%	-523.08%	-10.15%

Institutional & Insider Ownership

90.1% of Groupon shares are held by institutional investors. 35.7% of Groupon shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Mastermind beats Groupon on 6 of the 11 factors compared between the two stocks.

About Mastermind

Mastermind, Inc., an involvement marketing service agency, designs, creates, and develops branding and marketing campaigns for corporate clients. Its programs cover various forms, such as creating and managing digital content, designing campaign Websites/landing pages, social media and viral campaigns, mobile marketing initiatives, and brand communications. The company customers include sports and entertainment, oil and gas, automotive, retail, restaurant, B2B, financial services, hotel and hospitality, consumer packaged goods, healthcare and pharmaceuticals, technology, and agricultural chemicals. Mastermind, Inc. was founded in 2012 and is based in Atlanta, Georgia. Mastermind, Inc. is a subsidiary of Mastermind Marketing, Inc.

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; and first-party goods inventory. 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.