Hour Loop (NASDAQ:HOUR) and Groupon (NASDAQ:GRPN) Head-To-Head Analysis

Hour Loop (NASDAQ:HOUR) and Groupon (NASDAQ:GRPN) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

0.3% of Hour Loop shares are owned by institutional investors. Comparatively, 90.1% of Groupon shares are owned by institutional investors. 95.0% of Hour Loop shares are owned by insiders. Comparatively, 35.7% of Groupon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hour Loop	$138.25 million	0.57	$660,000.00	$0.03	74.67
Groupon	$492.56 million	1.72	-$59.03 million	($0.24)	-87.46

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

Volatility and Risk

Hour Loop has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Groupon has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Hour Loop and Groupon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hour Loop	1	0	0	0	1.00
Groupon	2	0	4	0	2.33

Groupon has a consensus price target of $29.80, suggesting a potential upside of 41.97%. Given Groupon’s stronger consensus rating and higher possible upside, analysts clearly believe Groupon is more favorable than Hour Loop.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hour Loop	0.56%	12.49%	3.28%
Groupon	-1.89%	-19.61%	-1.45%

Summary

Hour Loop beats Groupon on 8 of the 14 factors compared between the two stocks.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, 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.