eBay vs Groupon Which Is More Favorable?

eBay and Groupon are two popular e-commerce companies that offer different services to consumers. eBay is an online marketplace where users can buy and sell a wide variety of products, while Groupon offers deals and discounts on goods and services to its customers. Both companies have seen fluctuations in their stock prices over the years, with eBay being a more established player in the market and Groupon facing challenges in recent years. Investors looking to invest in e-commerce stocks may consider factors such as market performance, competition, and company growth potential when comparing eBay and Groupon stocks.

eBay or Groupon?

When comparing eBay 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 eBay 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. eBay has a dividend yield of 1.69%, while Groupon has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%. 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 eBay P/E ratio at 15.39 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. eBay P/B ratio is 5.74 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, eBay has seen a 5-year revenue growth of 0.74%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 34.22% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.50 for eBay and $11.21 for Groupon. Over the past year, eBay's prices ranged from $40.16 to $67.80, with a yearly change of 68.82%. 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.