Financial Review: Groupon (NASDAQ:GRPN) vs. D-MARKET Electronic Services & Trading (NASDAQ:HEPS)

Groupon (NASDAQ:GRPNGet Free Report) and D-MARKET Electronic Services & Trading (NASDAQ:HEPSGet Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Valuation and Earnings

This table compares Groupon and D-MARKET Electronic Services & Trading”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Groupon $498.42 million 1.41 -$83.52 million ($2.61) -7.10
D-MARKET Electronic Services & Trading $2.15 billion 0.43 -$144.76 million ($0.46) -5.65

Groupon has higher earnings, but lower revenue than D-MARKET Electronic Services & Trading. Groupon is trading at a lower price-to-earnings ratio than D-MARKET Electronic Services & Trading, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.1% of Groupon shares are held by institutional investors. Comparatively, 40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. 36.6% of Groupon shares are held by company insiders. Comparatively, 36.3% of D-MARKET Electronic Services & Trading shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Groupon has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, D-MARKET Electronic Services & Trading has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Groupon and D-MARKET Electronic Services & Trading, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Groupon 2 1 2 0 2.00
D-MARKET Electronic Services & Trading 1 2 0 0 1.67

Groupon currently has a consensus price target of $28.67, indicating a potential upside of 54.70%. D-MARKET Electronic Services & Trading has a consensus price target of $3.07, indicating a potential upside of 18.08%. Given Groupon’s stronger consensus rating and higher probable upside, research analysts clearly believe Groupon is more favorable than D-MARKET Electronic Services & Trading.

Profitability

This table compares Groupon and D-MARKET Electronic Services & Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Groupon -20.78% -717.37% -16.40%
D-MARKET Electronic Services & Trading -6.95% -338.17% -18.14%

Summary

Groupon beats D-MARKET Electronic Services & Trading on 8 of the 14 factors compared between the two stocks.

About Groupon

(Get Free Report)

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 D-MARKET Electronic Services & Trading

(Get Free Report)

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

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