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

Groupon, Inc. and NerdWallet, Inc. are both Internet Content & Information companies. NerdWallet, Inc. is the larger, with a market value of $730.6M against $633.6M — 1.2× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; NerdWallet, Inc. trades at 14.6×. NerdWallet, Inc. grew revenue faster over the last twelve months: 11.3% against 1.98%. NerdWallet, Inc. has the higher net margin (6.06% vs −25.3%) and the lower return on invested capital (17.0% 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 14.61 12.38
P/S 1.22 0.83 0.93
P/B n/m 2.16 1.24
Price to free cash flow 20.67 5.61 10.76
EV/EBITDA 36.56 6.57 10.74
EV/Sales 1.38 0.83 1.20
Earnings yield (19.91%) 6.85% (1.71%)
Free cash flow yield 4.84% 17.82% 4.26%

Profitability

Metric GRPN NRDS Internet Content & Information median
Gross margin 90.72% 93.85% 63.25%
Operating margin 0.94% 8.25% (1.87%)
Net margin (25.26%) 6.06% (1.37%)
Free cash flow margin 6.02% 14.83% 3.47%
Return on equity 1,211.23% 14.41% (1.19%)
Return on assets (20.15%) 11.50% 0.00%
Return on invested capital 32.40% 17.03% 0.00%

Growth

Metric GRPN NRDS Internet Content & Information median
Revenue growth (TTM) 1.98% 11.26% 6.92%
EPS growth (last fiscal year) (37.75%) 68.42% 34.37%
Revenue growth, 5-year CAGR (18.86%) 27.81% 10.46%
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 2.74 1.84
Net debt to EBITDA 1.11 (0.88) (0.53)

Dividend

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

Size

Metric GRPN NRDS Internet Content & Information median
Market cap 633.57m 730.64m 693.23m

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