Ocado Group (OTCMKTS:OCDDY) & Groupon (NASDAQ:GRPN) Head-To-Head Comparison
by Kim Johansen · The Markets DailyGroupon (NASDAQ:GRPN – Get Free Report) and Ocado Group (OTCMKTS:OCDDY – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Risk & Volatility
Groupon has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Ocado Group has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.
Profitability
This table compares Groupon and Ocado Group’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% |
| Ocado Group | N/A | N/A | N/A |
Valuation and Earnings
This table compares Groupon and Ocado Group”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 | 1.72 | -$83.52 million | ($2.61) | -8.66 |
| Ocado Group | $1.81 billion | 1.11 | $531.74 million | N/A | N/A |
Ocado Group has higher revenue and earnings than Groupon.
Analyst Recommendations
This is a breakdown of recent recommendations for Groupon and Ocado Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 1 | 2 | 0 | 2.00 |
| Ocado Group | 0 | 0 | 0 | 0 | 0.00 |
Groupon presently has a consensus target price of $19.50, suggesting a potential downside of 13.71%. Given Groupon’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Groupon is more favorable than Ocado Group.
Insider & Institutional Ownership
90.1% of Groupon shares are held by institutional investors. 36.6% of Groupon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
About Groupon
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 Ocado Group
Ocado Group plc, together with its subsidiaries, operates as an online grocery retailer in the United Kingdom and internationally. The company operates in three segments: Technology Solutions, Ocado Logistics, and Ocado Retail. It offers online grocery and general merchandise; and customer fulfillment centers and logistics services. The company is involved in the software and robotics platform business that provides the Ocado Smart Platform as a managed service, as well as offers Ocado Intelligent Automation that sells its technology to warehouse environments in non-grocery markets. In addition, the company provides online retail and automated storage and retrieval solutions for general merchandise to corporations. Ocado Group plc was founded in 2000 and is headquartered in Hatfield, the United Kingdom.