Alphabet vs Groupon Which Is More Reliable?

Alphabet Inc. and Groupon Inc. are two well-known companies in the technology and e-commerce industries, each with its own unique strengths and challenges. Alphabet, the parent company of Google, is a dominant player in the search engine and online advertising markets. On the other hand, Groupon is a popular online marketplace that connects consumers with local businesses through deals and discounts. Both companies have experienced fluctuations in their stock prices, making them interesting choices for investors looking to diversify their portfolios.

Alphabet or Groupon?

When comparing Alphabet 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 Alphabet 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. Alphabet has a dividend yield of 0.31%, while Groupon has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%. 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 Alphabet P/E ratio at 25.03 and Groupon's P/E ratio at 24.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 7.51 while Groupon's P/B ratio is 11.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $193.29 for Alphabet and $11.83 for Groupon. Over the past year, Alphabet's prices ranged from $131.06 to $196.89, with a yearly change of 50.23%. 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.