ALi vs Groupon Which Offers More Value?

Ali Baba Group Holding Limited (ALi) and Groupon Inc. are both prominent players in the e-commerce industry with significant market presence. ALi, based in China, operates various online platforms and services, while Groupon, headquartered in the United States, specializes in offering discounted deals on goods and services. Both companies have experienced fluctuations in their stock prices, with ALi demonstrating strong growth potential and Groupon facing challenges in a competitive market. This comparison will delve into their respective stock performances and outlooks.

ALi or Groupon?

When comparing ALi 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 ALi 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. ALi 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. ALi 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 ALi P/E ratio at -3.22 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. ALi P/B ratio is 2.84 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, ALi has seen a 5-year revenue growth of -0.42%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALi's ROE at -84.60% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$33.80 for ALi and $12.42 for Groupon. Over the past year, ALi's prices ranged from NT$26.40 to NT$57.67, with a yearly change of 118.43%. 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.