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

Groupon, Inc. and MediaAlpha, Inc. are both Internet Content & Information companies. Groupon, Inc. is the larger, with a market value of $855.5M against $591.8M — 1.4× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; MediaAlpha, Inc. trades at 5.3×. MediaAlpha, Inc. grew revenue faster over the last twelve months: 13.8% against 1.98%. MediaAlpha, Inc. has the higher net margin (7.94% vs −25.3%) and the higher return on invested capital (35.6% vs 32.4%). Across the 19 metrics below, MediaAlpha, Inc. leads on 15 and Groupon, Inc. on 4.

Valuation

Metric GRPN MAX Internet Content & Information median
P/E n/m 5.27 10.24
P/S 1.67 0.41 0.87
P/B n/m n/m 1.32
Price to free cash flow 28.27 8.85 8.85
EV/EBITDA 48.43 7.47 8.86
EV/Sales 1.83 0.53 1.15
Earnings yield (14.55%) 18.99% (1.58%)
Free cash flow yield 3.54% 11.30% 2.32%

Profitability

Metric GRPN MAX Internet Content & Information median
Gross margin 90.72% 14.71% 66.84%
Operating margin 0.94% 6.89% (3.41%)
Net margin (25.26%) 7.94% (3.02%)
Free cash flow margin 6.02% 4.60% 1.75%
Return on equity 1,211.23% (314.09%) 0.00%
Return on assets (20.15%) 31.91% (0.36%)
Return on invested capital 32.40% 35.63% 0.00%

Growth

Metric GRPN MAX Internet Content & Information median
Revenue growth (TTM) 1.98% 13.84% 2.65%
EPS growth (last fiscal year) (37.75%) 25.81% —
Revenue growth, 5-year CAGR (18.86%) 13.75% 9.73%
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) (35.71) 0.01
Current ratio 0.79 1.29 1.82
Net debt to EBITDA 1.11 4.09 (0.48)

Dividend

Metric GRPN MAX Internet Content & Information median
Dividend yield — — 3.19%
Payout ratio 0.00 0.00 0.00

Size

Metric GRPN MAX Internet Content & Information median
Market cap 855.50m 591.81m 283.68m

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