Akso Health Group (NASDAQ:AHG) and Groupon (NASDAQ:GRPN) Critical Review

Akso Health Group (NASDAQ:AHG) and Groupon (NASDAQ:GRPN) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Volatility & Risk

Akso Health Group has a beta of -0.7, indicating that its share price is 170% less volatile than the S&P 500. Comparatively, Groupon has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Akso Health Group and Groupon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akso Health Group	0	0	0	0	0.00
Groupon	1	0	4	0	2.60

Groupon has a consensus price target of $28.00, suggesting a potential downside of 14.66%. Given Groupon’s stronger consensus rating and higher probable upside, analysts plainly believe Groupon is more favorable than Akso Health Group.

Earnings and Valuation

This table compares Akso Health Group and Groupon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akso Health Group	$2.41 million	108.53	-$9.46 million	N/A	N/A
Groupon	$492.56 million	2.65	-$59.03 million	($0.95)	-34.54

Akso Health Group has higher earnings, but lower revenue than Groupon.

Profitability

This table compares Akso Health Group and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akso Health Group	N/A	N/A	N/A
Groupon	-8.13%	-83.07%	-5.94%

Insider and Institutional Ownership

1.2% of Akso Health Group shares are held by institutional investors. Comparatively, 90.1% of Groupon shares are held by institutional investors. 35.7% of Groupon shares 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 beats Akso Health Group on 7 of the 12 factors compared between the two stocks.

About Akso Health Group

Akso Health Group operates a social e-commerce mobile platform in China. The company operates Xiaobai Maimai App, which offers food and beverage products, wine, cosmetic products, fashion and apparel, entertainment products, housewares, home appliances, and cost-saving promotions at petrol gas stations. It also offers consultancy and information technology support services; provides health treatment services; sells medical devices; and trades in branded products, as well as promotes products. The company was formerly known as Xiaobai Maimai Inc. and changed its name to Akso Health Group in December 2021. Akso Health Group was founded in 2014 and is headquartered in Qingdao, China.

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.