Groupon vs Airbnb Which Performs Better?

Groupon and Airbnb are two popular companies in the e-commerce and hospitality industries, respectively. Both companies have seen fluctuations in their stock prices over the years, with Groupon experiencing challenges in a competitive market while Airbnb has quickly risen as a leader in the sharing economy. Investors are often interested in comparing the performance of these two stocks to determine which may be a more lucrative investment opportunity. Let's delve deeper into the similarities and differences between Groupon and Airbnb stocks.

Groupon or Airbnb?

When comparing Groupon and Airbnb, 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 Groupon and Airbnb.

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. Groupon has a dividend yield of -%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Groupon reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Airbnb 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 Groupon P/E ratio at 24.37 and Airbnb's P/E ratio at 47.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Groupon P/B ratio is 11.78 while Airbnb's P/B ratio is 10.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Groupon has seen a 5-year revenue growth of -0.82%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.83 for Groupon and $134.40 for Airbnb. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. Airbnb's prices fluctuated between $110.38 and $170.10, with a yearly change of 54.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.