Critical Comparison: Coupang (NYSE:CPNG) & Groupon (NASDAQ:GRPN)

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

Analyst Ratings

This is a summary of current recommendations for Coupang and Groupon, as provided 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 presently has a consensus price target of $31.14, indicating a potential downside of 0.81%. Groupon has a consensus price target of $29.80, indicating a potential upside of 30.99%. Given Groupon’s higher possible upside, analysts plainly believe Groupon is more favorable than Coupang.

Insider and 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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%

Risk and Volatility

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

Earnings & Valuation

This table compares Coupang and Groupon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$30.27 billion	1.89	$154.00 million	$0.20	156.99
Groupon	$492.56 million	1.87	-$59.03 million	($0.24)	-94.79

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.