AL vs Groupon Which Is More Attractive?

AL (Alibaba Group Holding Limited) and Groupon are two leading companies in the e-commerce industry, but their stocks have shown significant differences in performance over the years. While Alibaba's stock has demonstrated strong growth and stability due to its dominant position in the Chinese market and diverse revenue streams, Groupon's stock has experienced fluctuations and struggles in maintaining profitability. Investors looking for long-term growth potential may find Alibaba a more attractive option, whereas those seeking higher risk-reward opportunities may consider Groupon.

AL or Groupon?

When comparing AL and Groupon, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AL and Groupon.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AL has a dividend yield of -%, while Groupon has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Groupon reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AL P/E ratio at -15.83 and Groupon's P/E ratio at 25.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -35.91 while Groupon's P/B ratio is 12.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.57 for AL and $12.42 for Groupon. Over the past year, AL's prices ranged from HK$0.48 to HK$0.98, with a yearly change of 104.17%. Groupon's prices fluctuated between $7.75 and $19.56, with a yearly change of 152.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.