Contrasting Groupon (NASDAQ:GRPN) and Jeffs’ Brands (NASDAQ:JFBR)

Groupon (NASDAQ:GRPN) and Jeffs’ Brands (NASDAQ:JFBR) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Groupon and Jeffs’ Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groupon	$498.42 million	0.94	-$83.52 million	($2.12)	-5.42
Jeffs’ Brands	$14.47 million	0.09	-$7.80 million	N/A	N/A

Jeffs’ Brands has lower revenue, but higher earnings than Groupon.

Analyst Recommendations

This is a summary of current recommendations for Groupon and Jeffs’ Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groupon	2	1	2	0	2.00
Jeffs’ Brands	1	0	0	0	1.00

Groupon currently has a consensus price target of $33.67, indicating a potential upside of 192.75%. Given Groupon’s stronger consensus rating and higher possible upside, equities analysts plainly believe Groupon is more favorable than Jeffs’ Brands.

Insider and Institutional Ownership

90.1% of Groupon shares are held by institutional investors. Comparatively, 38.8% of Jeffs’ Brands shares are held by institutional investors. 35.7% of Groupon shares are held by company insiders. Comparatively, 51.3% of Jeffs’ Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Groupon and Jeffs’ Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groupon	-16.76%	-717.37%	-13.09%
Jeffs’ Brands	N/A	N/A	N/A

Risk and Volatility

Groupon has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, Jeffs’ Brands has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

About Groupon

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.

About Jeffs’ Brands

Jeffs’ Brands Ltd, together with its subsidiaries, operates as an e-commerce company. It engages in the sale of various consumer products on Amazon online marketplace. The company offers knife-sharpening sets, sharpeners, and nonslip rubber bases under the KnifePlanet brand; steel and soft-tip dart sets under the CC-Exquisite brand; car door and sets protectors for pets under the PetEvo brand; and bag sets and party supply kits for children under the Whoobli brand. It also provides reusable, self-cleansing pet hair removers for cats and dogs under the Wellted brand; and pest control products under the Fort brand. In addition, the company owns and operates Wellution, an Amazon food supplements and cosmetics brand. It offers its products primarily to individual online consumers. The company was incorporated in 2021 and is based in Bnei Brak, Israel.