Groupon (NASDAQ:GRPN – Get Free Report) and Savers Value Village (NYSE:SVV – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Institutional and Insider Ownership
90.1% of Groupon shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 36.6% of Groupon shares are owned by company insiders. Comparatively, 3.5% of Savers Value Village shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Groupon and Savers Value Village, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 1 | 1 | 0 | 1.75 |
| Savers Value Village | 1 | 3 | 4 | 0 | 2.38 |
Profitability
This table compares Groupon and Savers Value Village’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -25.26% | N/A | -20.28% |
| Savers Value Village | 1.42% | 14.58% | 3.12% |
Risk and Volatility
Groupon has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Earnings & Valuation
This table compares Groupon and Savers Value Village”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $497.41 million | 1.50 | -$83.52 million | ($3.11) | -5.88 |
| Savers Value Village | $1.68 billion | 0.90 | $22.64 million | $0.16 | 61.47 |
Savers Value Village has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.
Summary
Savers Value Village beats Groupon on 12 of the 14 factors compared between the two stocks.
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 Savers Value Village
Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.
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