GEM vs Groupon Which Outperforms?

GEM and Groupon are both e-commerce companies that offer deals and discounts to consumers. However, the two stocks have distinct differences in their performance and potential for growth. GEM, known for its focus on luxury goods and high-end experiences, has seen steady growth in recent years. On the other hand, Groupon has faced challenges in a competitive marketplace and has struggled to maintain profitability. Investors should carefully consider the strengths and weaknesses of each stock before making investment decisions.

GEM or Groupon?

When comparing GEM 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 GEM 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. GEM has a dividend yield of 1.18%, while Groupon has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GEM reports a 5-year dividend growth of 13.97% year and a payout ratio of 119.03%. 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 GEM P/E ratio at 26.80 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. GEM P/B ratio is 1.80 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, GEM has seen a 5-year revenue growth of 0.63%, while Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GEM's ROE at 6.73% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥6.80 for GEM and $11.21 for Groupon. Over the past year, GEM's prices ranged from ¥3.95 to ¥7.84, with a yearly change of 98.48%. 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.