Apple vs Groupon Which Outperforms?

Apple and Groupon are two popular tech stocks that have both experienced fluctuations in their value over the years. Apple, known for its innovative products and strong brand loyalty, has seen steady growth in its stock price. On the other hand, Groupon, once a promising daily deals platform, has struggled to maintain profitability and market share. Investors have debated the potential of these two stocks, with some favoring Apple's stability and others intrigued by Groupon's potential for a turnaround.

Apple or Groupon?

When comparing Apple 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 Apple 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. Apple has a dividend yield of 0.4%, while Groupon has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. 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 Apple P/E ratio at 40.16 and Groupon's P/E ratio at 23.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 66.10 while Groupon's P/B ratio is 11.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.24 for Apple and $11.21 for Groupon. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. 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.