Reviewing Ocado Group (OTCMKTS:OCDDY) and Groupon (NASDAQ:GRPN)

Ocado Group (OTCMKTS:OCDDY) and Groupon (NASDAQ:GRPN) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Volatility & Risk

Ocado Group has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500. Comparatively, Groupon has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Ocado Group and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocado Group	N/A	N/A	N/A
Groupon	-20.78%	-717.37%	-16.40%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ocado Group and Groupon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocado Group	0	0	0	0	0.00
Groupon	2	1	2	0	2.00

Groupon has a consensus target price of $19.50, indicating a potential upside of 20.44%. Given Groupon’s stronger consensus rating and higher possible upside, analysts plainly believe Groupon is more favorable than Ocado Group.

Valuation & Earnings

This table compares Ocado Group and Groupon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocado Group	$1.81 billion	1.15	$531.74 million	N/A	N/A
Groupon	$498.42 million	1.23	-$83.52 million	($2.61)	-6.20

Ocado Group has higher revenue and earnings than Groupon.

Institutional and Insider Ownership

90.1% of Groupon shares are held by institutional investors. 36.6% of Groupon shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Ocado Group

Ocado Group plc, together with its subsidiaries, operates as an online grocery retailer in the United Kingdom and internationally. The company operates in three segments: Technology Solutions, Ocado Logistics, and Ocado Retail. It offers online grocery and general merchandise; and customer fulfillment centers and logistics services. The company is involved in the software and robotics platform business that provides the Ocado Smart Platform as a managed service, as well as offers Ocado Intelligent Automation that sells its technology to warehouse environments in non-grocery markets. In addition, the company provides online retail and automated storage and retrieval solutions for general merchandise to corporations. Ocado Group plc was founded in 2000 and is headquartered in Hatfield, the United Kingdom.

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.