Groupon vs Alibaba Which Is Stronger?

Groupon and Alibaba are two prominent companies in the e-commerce industry, but they operate in vastly different markets. Groupon, known for its daily deals and discounts, appeals to consumers seeking bargains on various products and services. On the other hand, Alibaba is a global e-commerce powerhouse, dominating the Chinese market and expanding its reach internationally. Both companies have experienced fluctuations in their stock prices, with investors weighing factors such as revenue growth, profitability, and market competition.

Groupon or Alibaba?

When comparing Groupon and Alibaba, 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 Alibaba.

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 Alibaba has a dividend yield of 3.07%. 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, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%.

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 26.64 and Alibaba's P/E ratio at 17.84. 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 12.87 while Alibaba's P/B ratio is 1.62.

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 Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and Alibaba's ROE at 8.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.60 for Groupon and $85.90 for Alibaba. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. Alibaba's prices fluctuated between $66.63 and $117.82, with a yearly change of 76.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.