Groupon, Inc. (GRPN) vs Upwork Inc. (UPWK)

Groupon, Inc. and Upwork Inc. are both Internet Content & Information companies. Upwork Inc. is the larger, with a market value of $1.0B against $855.5M — 1.2× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; Upwork Inc. trades at 10.2×. Groupon, Inc. grew revenue faster over the last twelve months: 1.98% against 1.86%. Upwork Inc. has the higher net margin (12.9% vs −25.3%) and the lower return on invested capital (20.8% vs 32.4%). Across the 19 metrics below, Upwork Inc. leads on 13 and Groupon, Inc. on 6.

Valuation

Metric GRPN UPWK Internet Content & Information median
P/E n/m 10.19 10.24
P/S 1.67 1.28 0.87
P/B n/m 1.65 1.32
Price to free cash flow 28.27 5.75 8.85
EV/EBITDA 48.43 7.57 8.86
EV/Sales 1.83 1.42 1.15
Earnings yield (14.55%) 9.82% (1.58%)
Free cash flow yield 3.54% 17.38% 2.32%

Profitability

Metric GRPN UPWK Internet Content & Information median
Gross margin 90.72% 77.21% 66.84%
Operating margin 0.94% 15.10% (3.41%)
Net margin (25.26%) 12.93% (3.02%)
Free cash flow margin 6.02% 22.30% 1.75%
Return on equity 1,211.23% 16.70% 0.00%
Return on assets (20.15%) 8.03% (0.36%)
Return on invested capital 32.40% 20.78% 0.00%

Growth

Metric GRPN UPWK Internet Content & Information median
Revenue growth (TTM) 1.98% 1.86% 2.65%
EPS growth (last fiscal year) (37.75%) (44.74%) —
Revenue growth, 5-year CAGR (18.86%) 16.09% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRPN UPWK Internet Content & Information median
Debt to equity (4.26) 0.59 0.01
Current ratio 0.79 1.42 1.82
Net debt to EBITDA 1.11 (2.10) (0.48)

Dividend

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

Size

Metric GRPN UPWK Internet Content & Information median
Market cap 855.50m 1.01b 283.68m

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