Groupon vs Sea Which Is More Promising?

Groupon and Sea Limited are two companies that operate in different sectors but both have had significant impacts on their respective industries. Groupon is a popular e-commerce platform that allows users to discover and purchase deals on a variety of products and services. On the other hand, Sea Limited is a leading digital entertainment and e-commerce company in Southeast Asia. Both companies have experienced fluctuations in their stock prices due to various factors such as market conditions, competition, and the overall economy. In this comparison, we will analyze the performance of Groupon and Sea Limited stocks to provide insights into which may be a better investment option.

Groupon or Sea?

When comparing Groupon and Sea, 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 Sea.

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 Sea 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, Sea 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 25.73 and Sea's P/E ratio at 682.14. 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 12.43 while Sea's P/B ratio is 8.69.

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 Sea's is 8.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and Sea's ROE at 1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.42 for Groupon and $111.95 for Sea. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. Sea's prices fluctuated between $34.35 and $119.47, with a yearly change of 247.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.