Groupon vs JD.com Which Performs Better?

Groupon and JD.com are two prominent companies in the e-commerce industry, each offering unique opportunities for investors. Groupon, known for its daily deals and discounts, has seen fluctuations in its stock performance due to market competition. On the other hand, JD.com, one of China's largest online retailers, has experienced steady growth and expansion. Both companies present different investment potential, with Groupon catering to consumer demand for deals and JD.com tapping into the booming Chinese market. Investors should carefully consider their investment goals and risk tolerance when choosing between these two stocks.

Groupon or JD.com?

When comparing Groupon and JD.com, 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 JD.com.

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 JD.com has a dividend yield of 2.04%. 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, JD.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.32%.

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 JD.com's P/E ratio at 11.76. 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 JD.com's P/B ratio is 1.80.

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 JD.com's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and JD.com's ROE at 15.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.60 for Groupon and $37.16 for JD.com. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. JD.com's prices fluctuated between $20.82 and $47.82, with a yearly change of 129.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.