Head-To-Head Comparison: Groupon (NASDAQ:GRPN) & Macy’s (NYSE:M)

Groupon (NASDAQ:GRPN) and Macy’s (NYSE:M) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Risk & Volatility

Groupon has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Macy’s has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Groupon and Macy’s”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	0.98	-$83.52 million	($0.22)	-55.50
Macy’s	$22.62 billion	0.28	$642.00 million	$2.73	8.91

Macy’s has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than Macy’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Groupon and Macy’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groupon	-1.67%	N/A	-1.36%
Macy’s	3.29%	13.21%	3.83%

Institutional and Insider Ownership

90.0% of Groupon shares are owned by institutional investors. Comparatively, 87.4% of Macy’s shares are owned by institutional investors. 36.6% of Groupon shares are owned by insiders. Comparatively, 1.1% of Macy’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Groupon and Macy’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groupon	2	0	1	0	1.67
Macy’s	2	8	3	0	2.08

Groupon presently has a consensus price target of $23.00, indicating a potential upside of 88.37%. Macy’s has a consensus price target of $22.78, indicating a potential downside of 6.33%. Given Groupon’s higher possible upside, research analysts clearly believe Groupon is more favorable than Macy’s.

Summary

Macy’s beats Groupon on 10 of the 14 factors compared between the two stocks.

About Groupon

Groupon, Inc. operates an online marketplace that connects consumers with local businesses. Through its website and mobile app, customers can discover and purchase offers on services and experiences such as dining, wellness, entertainment and activities. The company also provides merchants with a platform to promote their offerings and reach potential customers. Groupon has operated in North America and international markets, though the availability of its services and offers varies by location.

About Macy’s

Macy’s, Inc. is a U.S. retailer operating department stores and digital shopping platforms under the Macy’s, Bloomingdale’s and Bluemercury brands. Its offerings include apparel, footwear, accessories, beauty products, jewelry, home furnishings and other consumer goods. The company traces its history to 1858, when Rowland Hussey Macy opened a dry-goods store in New York City. Macy’s, Inc. serves customers primarily in the United States through its stores and e-commerce businesses. Tony Spring, who previously led Bloomingdale’s, became Macy’s, Inc.’s chief executive officer in 2024.