Groupon, Inc. (GRPN) vs NerdWallet, Inc. (NRDS)

Groupon, Inc. and NerdWallet, Inc. are both Internet Content & Information companies. Groupon, Inc. is the larger, with a market value of $855.5M against $524.2M — 1.6× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; NerdWallet, Inc. trades at 9.3×. NerdWallet, Inc. grew revenue faster over the last twelve months: 11.5% against 1.98%. NerdWallet, Inc. has the higher net margin (7.56% vs −25.3%) and the lower return on invested capital (20.9% vs 32.4%). Across the 20 metrics below, NerdWallet, Inc. leads on 17 and Groupon, Inc. on 3.

Valuation

Metric GRPN NRDS Internet Content & Information median
P/E n/m 9.34 10.24
P/S 1.67 0.64 0.87
P/B n/m 1.70 1.32
Price to free cash flow 28.27 3.76 8.85
EV/EBITDA 48.43 3.89 8.86
EV/Sales 1.83 0.58 1.15
Earnings yield (14.55%) 10.71% (1.58%)
Free cash flow yield 3.54% 26.60% 2.32%

Profitability

Metric GRPN NRDS Internet Content & Information median
Gross margin 90.72% 93.50% 66.84%
Operating margin 0.94% 10.23% (3.41%)
Net margin (25.26%) 7.56% (3.02%)
Free cash flow margin 6.02% 17.12% 1.75%
Return on equity 1,211.23% 18.16% 0.00%
Return on assets (20.15%) 14.54% (0.36%)
Return on invested capital 32.40% 20.85% 0.00%

Growth

Metric GRPN NRDS Internet Content & Information median
Revenue growth (TTM) 1.98% 11.51% 2.65%
EPS growth (last fiscal year) (37.75%) 68.42% —
Revenue growth, 5-year CAGR (18.86%) 27.81% 9.73%
Net income growth, 5-year CAGR 0.00% 55.83% 0.00%

Health

Metric GRPN NRDS Internet Content & Information median
Debt to equity (4.26) 0.00 0.01
Current ratio 0.79 2.62 1.82
Net debt to EBITDA 1.11 (0.88) (0.48)

Dividend

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

Size

Metric GRPN NRDS Internet Content & Information median
Market cap 855.50m 524.17m 283.68m

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