Groupon, Inc. (GRPN) vs Yelp Inc. (YELP)

Groupon, Inc. and Yelp Inc. are both Internet Content & Information companies. Yelp Inc. is the larger, with a market value of $996.8M against $855.5M — 1.2× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; Yelp Inc. trades at 8.6×. Groupon, Inc. grew revenue faster over the last twelve months: 1.98% against 1.50%. Yelp Inc. has the higher net margin (8.59% vs −25.3%) and the lower return on invested capital (16.6% vs 32.4%). Across the 19 metrics below, Yelp Inc. leads on 14 and Groupon, Inc. on 5.

Valuation

Metric GRPN YELP Internet Content & Information median
P/E n/m 8.57 10.24
P/S 1.67 0.68 0.87
P/B n/m 1.55 1.32
Price to free cash flow 28.27 3.44 8.85
EV/EBITDA 48.43 3.73 8.86
EV/Sales 1.83 0.68 1.15
Earnings yield (14.55%) 11.66% (1.58%)
Free cash flow yield 3.54% 29.05% 2.32%

Profitability

Metric GRPN YELP Internet Content & Information median
Gross margin 90.72% 89.65% 66.84%
Operating margin 0.94% 11.73% (3.41%)
Net margin (25.26%) 8.59% (3.02%)
Free cash flow margin 6.02% 20.19% 1.75%
Return on equity 1,211.23% 18.19% 0.00%
Return on assets (20.15%) 12.84% (0.36%)
Return on invested capital 32.40% 16.61% 0.00%

Growth

Metric GRPN YELP Internet Content & Information median
Revenue growth (TTM) 1.98% 1.50% 2.65%
EPS growth (last fiscal year) (37.75%) 19.15% —
Revenue growth, 5-year CAGR (18.86%) 10.91% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRPN YELP Internet Content & Information median
Debt to equity (4.26) 0.16 0.01
Current ratio 0.79 1.75 1.82
Net debt to EBITDA 1.11 (1.16) (0.48)

Dividend

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

Size

Metric GRPN YELP Internet Content & Information median
Market cap 855.50m 996.82m 283.68m

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