Groupon (NASDAQ:GRPN – Get Rating) and WPP (NASDAQ:WPP – Get Rating) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Groupon and WPP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -39.66% | -87.28% | -9.83% |
| WPP | N/A | N/A | N/A |
Valuation and Earnings
This table compares Groupon and WPP’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $599.09 million | 0.20 | -$237.61 million | ($7.89) | -0.50 |
| WPP | $14.43 billion | 0.88 | $844.43 million | N/A | N/A |
Volatility & Risk
Groupon has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, WPP has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Groupon and WPP, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 2 | 0 | 0 | 1.50 |
| WPP | 0 | 0 | 0 | 0 | N/A |
Groupon presently has a consensus price target of $11.10, suggesting a potential upside of 179.60%. Given Groupon’s higher probable upside, equities analysts plainly believe Groupon is more favorable than WPP.
Institutional & Insider Ownership
57.1% of Groupon shares are held by institutional investors. Comparatively, 3.8% of WPP shares are held by institutional investors. 15.9% of Groupon shares are held by company insiders. Comparatively, 1.0% of WPP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
WPP beats Groupon on 6 of the 10 factors compared between the two stocks.
About Groupon
Groupon, Inc. operates as a global scaled two-sided marketplace that connects consumers to merchants. It operates through the North America and International segments. The company was founded by Andrew D. Mason, Eric Paul Lefkofsky, and Bradley A. Keywell in 2008 and is headquartered in Chicago, IL.
About WPP
WPP Plc is a creative transformation company, which engages in the provision of communications services. It operates through the following segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. The Global Integrated Agencies segment offers creative services including advertising, marketing, and brand strategies and campaigns across all media. The Public Relations segment helps clients communicate with all stakeholders, from consumers and investors to government and non-government organizations. The Specialist Agencies segment delivers brand experience and identity, and specialist, targeted services. The company was founded by Martin Stuart Sorrell in 1985 and is headquartered in London, the United Kingdom.
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