Coupang vs Groupon

Coupang and Groupon are two popular e-commerce platforms that offer discounted deals on various products and services. While Coupang is a South Korean company that has experienced rapid growth in recent years, Groupon is an American company that was once a pioneer in the online deal industry but has struggled to maintain its market share. Both companies' stocks have seen fluctuations in value, with Coupang's IPO in March 2021 generating significant investor interest. Investors may consider various factors such as revenue growth, profitability, and market competition when comparing the potential of Coupang and Groupon stocks.

Coupang or Groupon?

When comparing Coupang 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 Coupang 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. Coupang 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. Coupang 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 Coupang P/E ratio at 42.82 and Groupon's P/E ratio at -11.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 11.68 while Groupon's P/B ratio is 10.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coupang has seen a 5-year revenue growth of 4.40%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 28.14% and Groupon's ROE at 1658.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.07 for Coupang and $9.62 for Groupon. Over the past year, Coupang's prices ranged from $13.51 to $26.28, with a yearly change of 94.52%. Groupon's prices fluctuated between $8.08 and $19.56, with a yearly change of 142.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.