Groupon (NASDAQ:GRPN – Get Free Report) and Linkage Global (NASDAQ:LGCB – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
90.1% of Groupon shares are held by institutional investors. Comparatively, 0.3% of Linkage Global shares are held by institutional investors. 35.7% of Groupon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Groupon and Linkage Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Groupon | 2 | 0 | 4 | 0 | 2.33 |
| Linkage Global | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Groupon and Linkage Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Groupon | $492.56 million | 1.75 | -$59.03 million | ($0.24) | -89.08 |
| Linkage Global | $10.29 million | 1.68 | -$440,000.00 | N/A | N/A |
Linkage Global has lower revenue, but higher earnings than Groupon.
Risk & Volatility
Groupon has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Linkage Global has a beta of -0.77, suggesting that its stock price is 177% less volatile than the S&P 500.
Profitability
This table compares Groupon and Linkage Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Groupon | -1.89% | -19.61% | -1.45% |
| Linkage Global | N/A | N/A | N/A |
Summary
Groupon beats Linkage Global on 8 of the 12 factors compared between the two stocks.
About Groupon
Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.
About Linkage Global
Linkage Global Inc, through its subsidiaries, operates as a cross-border e-commerce integrated services provider in Japan, Hong Kong, and Mainland China. It provides cross-border product sales; digital marketing services; and e-commerce operation training and software support services. Linkage Global Inc was founded in 2011 and is headquartered in Tokyo, Japan.
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