Groupon vs Hyatt Hotels Which Is More Promising?

Groupon and Hyatt Hotels are two companies in the service industry that cater to different markets. Groupon is known for its online marketplace offering discounts on products and experiences, while Hyatt Hotels is a global hospitality company known for its luxury accommodations. Both companies are publicly traded on the stock market, but their performance can vary greatly due to the cyclical nature of the travel and leisure industries. Investors should carefully consider the unique factors influencing the stock prices of Groupon and Hyatt Hotels before making any investment decisions.

Groupon or Hyatt Hotels?

When comparing Groupon and Hyatt Hotels, 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 Hyatt Hotels.

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 Hyatt Hotels has a dividend yield of 0.37%. 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, Hyatt Hotels reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.52%.

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 Hyatt Hotels's P/E ratio at 11.75. 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 Hyatt Hotels's P/B ratio is 4.38.

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 Hyatt Hotels's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and Hyatt Hotels's ROE at 37.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.60 for Groupon and $163.08 for Hyatt Hotels. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. Hyatt Hotels's prices fluctuated between $120.69 and $168.16, with a yearly change of 39.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.