Reviewing Groupon Inc. (GRPN)’s and 58.com Inc. (NYSE:WUBA)…


Groupon Inc. (NASDAQ:GRPN) and 58.com Inc. (NYSE:WUBA), are influenced by compare since they are both players in the Internet Information Providers. These factors are particularly influence the profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation of the two firms.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Groupon Inc. 2.64B 0.76 11.08M -0.02 0.00
58.com Inc. N/A 0.00 N/A 2.00 31.65

In table 1 we can see Groupon Inc. and 58.com Inc.’s gross revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 provides Groupon Inc. and 58.com Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Groupon Inc. -0.42% -3.3% -0.7%
58.com Inc. 0.00% 9.8% 6.7%

Volatility and Risk

Groupon Inc.’s volatility measures that it’s 45.00% more volatile than Standard and Poor’s 500 due to its 1.45 beta. 58.com Inc. on the other hand, has 1.64 beta which makes it 64.00% more volatile compared to Standard and Poor’s 500.

Liquidity

Groupon Inc.’s Current Ratio is 1 while its Quick Ratio is 1. On the competitive side is, 58.com Inc. which has a 1.2 Current Ratio and a 1.2 Quick Ratio. 58.com Inc. is better positioned to pay off short and long-term obligations compared to Groupon Inc.

Analyst Ratings

The following table delivered below contains the ratings and recommendations for Groupon Inc. and 58.com Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Groupon Inc. 0 3 0 2.00
58.com Inc. 0 0 3 3.00

The average price target of Groupon Inc. is $3.5, with potential downside of -0.85%. On the other hand, 58.com Inc.’s potential upside is 33.31% and its average price target is $82.33. The data provided earlier shows that 58.com Inc. appears more favorable than Groupon Inc., based on analyst opinion.

Institutional and Insider Ownership

The shares of both Groupon Inc. and 58.com Inc. are owned by institutional investors at 64.5% and 74% respectively. Insiders owned 1.1% of Groupon Inc. shares. Competitively, insiders own roughly 4.78% of 58.com Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Groupon Inc. 1.51% -10.61% 5.97% -23.76% -20.14% 5.31%
58.com Inc. -14.46% -0.17% 7.82% -17.3% -14.98% 16.75%

For the past year Groupon Inc. has weaker performance than 58.com Inc.

Summary

58.com Inc. beats on 10 of the 12 factors Groupon Inc.

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America, Europe, the Middle East, Africa, and internationally. The company provides deals in various categories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel, as well as provides discounted and market rates for hotel, airfare, and package deals. It offers its deal offerings to customers through Websites; search engines; mobile applications and mobile Web browsers, which enable consumers to browse, purchase, manage, and redeem deals on their mobile devices; emails; affiliate channels; display advertising; and television and radio advertising. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. The company was founded in 2008 and is headquartered in Chicago, Illinois. Groupon, Inc. is a subsidiary of The Point, LLC.

58.com Inc. operates online classifieds and listing platforms that enable local merchants and consumers to connect, share information, and conduct business in China. It primarily operates online multi-content category-classified advertising platforms under the 58 and Ganji names; and Anjuke, an online real estate listing platform. The companyÂ’s platform contains local information of approximately 500 cities or towns in various content categories, including jobs, real estate, used goods, automotive, and yellow pages. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, as well as marketing services through collaboration with third party Internet companies. 58.com Inc. was founded in 2005 and is headquartered in Beijing, the PeopleÂ’s Republic of China.


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