Groupon (NASDAQ:GRPN – Get Free Report) and MDWerks (OTCMKTS:MDWK – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Groupon and MDWerks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 1 | 4 | 0 | 2.29 |
| MDWerks | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Groupon and MDWerks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -1.89% | -19.61% | -1.45% |
| MDWerks | -107.60% | -223.10% | -64.68% |
Valuation & Earnings
This table compares Groupon and MDWerks”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $492.56 million | 1.69 | -$59.03 million | ($0.24) | -86.00 |
| MDWerks | $2.36 million | 9.64 | -$1.62 million | ($0.02) | -5.00 |
MDWerks has lower revenue, but higher earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than MDWerks, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Groupon has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, MDWerks has a beta of 15.08, indicating that its share price is 1,408% more volatile than the S&P 500.
Summary
Groupon beats MDWerks on 9 of the 14 factors compared between the two stocks.
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.
About MDWerks
MDWerks, Inc., together with its subsidiaries, provides energy waving technologies in the United States. The company offers green and radio wave technologies. It also produces and sells alcoholic beverages, including whiskey and vodka. In addition, the company develops radio frequency applications. It serves structural engineering, food and beverage, alcoholic beverages, manufacturing, and adhesives industries. MDWerks, Inc. is based in Green Cove Springs, Florida.
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