Groupon, Inc. (GRPN) vs MediaAlpha, Inc. (MAX)

Groupon, Inc. and MediaAlpha, Inc. are both Internet Content & Information companies. MediaAlpha, Inc. is the larger, with a market value of $855.3M against $633.6M — 1.4× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; MediaAlpha, Inc. trades at 7.0×. MediaAlpha, Inc. grew revenue faster over the last twelve months: 15.2% against 1.98%. MediaAlpha, Inc. has the higher net margin (8.35% vs −25.3%) and the higher return on invested capital (33.2% vs 32.4%). Across the 19 metrics below, MediaAlpha, Inc. leads on 14 and Groupon, Inc. on 5.

Valuation

Metric GRPN MAX Internet Content & Information median
P/E n/m 6.99 12.38
P/S 1.22 0.59 0.93
P/B n/m 38.58 1.24
Price to free cash flow 20.67 14.06 10.76
EV/EBITDA 36.56 9.54 10.74
EV/Sales 1.38 0.71 1.20
Earnings yield (19.91%) 14.30% (1.71%)
Free cash flow yield 4.84% 7.11% 4.26%

Profitability

Metric GRPN MAX Internet Content & Information median
Gross margin 90.72% 14.84% 63.25%
Operating margin 0.94% 7.22% (1.87%)
Net margin (25.26%) 8.35% (1.37%)
Free cash flow margin 6.02% 4.19% 3.47%
Return on equity 1,211.23% (469.64%) (1.19%)
Return on assets (20.15%) 33.85% 0.00%
Return on invested capital 32.40% 33.20% 0.00%

Growth

Metric GRPN MAX Internet Content & Information median
Revenue growth (TTM) 1.98% 15.22% 6.92%
EPS growth (last fiscal year) (37.75%) 25.81% 34.37%
Revenue growth, 5-year CAGR (18.86%) 13.75% 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRPN MAX Internet Content & Information median
Debt to equity (4.26) 8.85 0.01
Current ratio 0.79 1.32 1.84
Net debt to EBITDA 1.11 4.09 (0.53)

Dividend

Metric GRPN MAX Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric GRPN MAX Internet Content & Information median
Market cap 633.57m 855.32m 693.23m

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