Analyzing Groupon (NASDAQ:GRPN) & Global-e Online (NASDAQ:GLBE)

Global-e Online (NASDAQ:GLBE) 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 valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Institutional and Insider Ownership

94.6% of Global-e Online shares are owned by institutional investors. Comparatively, 90.1% of Groupon shares are owned by institutional investors. 11.6% of Global-e Online shares are owned by company insiders. Comparatively, 35.7% of Groupon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Global-e Online has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Groupon has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Global-e Online and Groupon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-e Online	2	1	10	0	2.62
Groupon	2	1	4	0	2.29

Global-e Online presently has a consensus target price of $49.91, indicating a potential upside of 24.31%. Groupon has a consensus target price of $29.80, indicating a potential upside of 85.09%. Given Groupon’s higher possible upside, analysts clearly believe Groupon is more favorable than Global-e Online.

Profitability

This table compares Global-e Online and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-e Online	0.82%	0.81%	0.59%
Groupon	-28.52%	-717.37%	-22.78%

Earnings & Valuation

This table compares Global-e Online and Groupon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-e Online	$752.76 million	9.05	-$75.55 million	$0.03	1,338.33
Groupon	$492.56 million	1.33	-$59.03 million	($3.49)	-4.61

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

Summary

Global-e Online beats Groupon on 11 of the 14 factors compared between the two stocks.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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.