Coupang (NYSE:CPNG) vs. Groupon (NASDAQ:GRPN) Head to Head Contrast

Coupang (NYSE:CPNG) and Groupon (NASDAQ:GRPN) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

83.7% of Coupang shares are held by institutional investors. Comparatively, 90.1% of Groupon shares are held by institutional investors. 12.8% of Coupang shares are held by company insiders. Comparatively, 35.7% of Groupon shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coupang	1.13%	7.47%	1.98%
Groupon	-1.89%	-19.61%	-1.45%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	0	2	5	1	2.88
Groupon	1	0	4	0	2.60

Coupang currently has a consensus target price of $31.14, suggesting a potential downside of 3.05%. Groupon has a consensus target price of $29.80, suggesting a potential upside of 31.45%. Given Groupon’s higher probable upside, analysts plainly believe Groupon is more favorable than Coupang.

Risk and Volatility

Coupang has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Groupon has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Coupang and Groupon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$30.27 billion	1.93	$154.00 million	$0.20	160.62
Groupon	$492.56 million	1.86	-$59.03 million	($0.24)	-94.46

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

Summary

Coupang beats Groupon on 12 of the 15 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 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.