Groupon (NASDAQ:GRPN – Get Free Report) and Global-e Online (NASDAQ:GLBE – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
Groupon has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Global-e Online has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Groupon and Global-e Online, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 0 | 1 | 0 | 1.67 |
| Global-e Online | 0 | 3 | 13 | 0 | 2.81 |
Groupon presently has a consensus price target of $23.00, suggesting a potential upside of 85.33%. Global-e Online has a consensus price target of $48.83, suggesting a potential upside of 17.08%. Given Groupon’s higher probable upside, equities analysts clearly believe Groupon is more favorable than Global-e Online.
Institutional and Insider Ownership
90.0% of Groupon shares are owned by institutional investors. Comparatively, 94.6% of Global-e Online shares are owned by institutional investors. 36.6% of Groupon shares are owned by company insiders. Comparatively, 11.6% of Global-e Online shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Groupon and Global-e Online’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% |
| Global-e Online | 13.87% | 16.70% | 11.39% |
Earnings and Valuation
This table compares Groupon and Global-e Online”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $498.42 million | 1.00 | -$83.52 million | ($0.22) | -56.41 |
| Global-e Online | $962.20 million | 7.36 | $68.27 million | $0.86 | 48.50 |
Global-e Online has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than Global-e Online, indicating that it is currently the more affordable of the two stocks.
Summary
Global-e Online beats Groupon on 12 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 Global-e Online
Global-e Online Ltd. provides a cross-border e-commerce platform that helps retailers and consumer brands sell to shoppers in international markets. Its services support the online shopping journey, from localized storefronts and checkout through payment and delivery. The platform helps merchants tailor the shopping experience to customers in different countries, including by supporting local currencies and payment options and managing international shipping, duties and taxes, and returns. Global-e serves businesses seeking to reach consumers across a range of global markets.
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