Groupon (NASDAQ:GRPN – Get Free Report) and QVC Group (NASDAQ:QVCGA – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
90.1% of Groupon shares are held by institutional investors. Comparatively, 64.1% of QVC Group shares are held by institutional investors. 35.7% of Groupon shares are held by insiders. Comparatively, 12.4% of QVC Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Groupon and QVC Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -16.76% | -717.37% | -13.09% |
| QVC Group | -38.83% | N/A | -15.22% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 1 | 2 | 0 | 2.00 |
| QVC Group | 1 | 0 | 0 | 0 | 1.00 |
Groupon presently has a consensus target price of $33.67, suggesting a potential upside of 160.58%. Given Groupon’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Groupon is more favorable than QVC Group.
Earnings & Valuation
This table compares Groupon and QVC Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $498.42 million | 1.06 | -$83.52 million | ($2.12) | -6.09 |
| QVC Group | $10.04 billion | 0.00 | -$1.29 billion | ($460.35) | -0.01 |
Groupon has higher earnings, but lower revenue than QVC Group. Groupon is trading at a lower price-to-earnings ratio than QVC Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Groupon has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500. Comparatively, QVC Group has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500.
Summary
Groupon beats QVC Group on 10 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 QVC Group
QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.
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