Groupon vs Walmart Which Should You Buy?

Groupon and Walmart are two well-known companies that operate in different sectors of the retail industry. While Walmart is a giant in the traditional brick-and-mortar retail space, Groupon is a digital marketplace that offers deals and discounts to consumers. Both companies have seen fluctuations in their stock prices over the years, with Walmart being a more stable investment option due to its solid revenue stream and established market presence. Groupon, on the other hand, has faced challenges with competition and shifting consumer trends, making its stock a riskier investment. In this comparison, we will examine the performance and potential future outlook of Groupon vs. Walmart stocks.

Groupon or Walmart?

When comparing Groupon and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.65%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 Walmart's P/E ratio at 39.10. 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 Walmart's P/B ratio is 8.73.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.60 for Groupon and $95.33 for Walmart. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. Walmart's prices fluctuated between $49.85 and $96.18, with a yearly change of 92.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.