WPP (NASDAQ:WPP – Get Rating) and Groupon (NASDAQ:GRPN – Get Rating) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
4.0% of WPP shares are held by institutional investors. Comparatively, 85.9% of Groupon shares are held by institutional investors. 1.0% of WPP shares are held by company insiders. Comparatively, 15.9% of Groupon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Get WPP alerts:Volatility & Risk
WPP has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Groupon has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for WPP and Groupon, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WPP | 0 | 0 | 0 | 0 | N/A |
| Groupon | 2 | 3 | 1 | 0 | 1.83 |
Groupon has a consensus target price of $16.67, indicating a potential upside of 79.99%. Given Groupon's higher possible upside, analysts plainly believe Groupon is more favorable than WPP.
Valuation & Earnings
This table compares WPP and Groupon's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WPP | $17.60 billion | 0.51 | $876.90 million | N/A | N/A |
| Groupon | $967.11 million | 0.29 | $118.67 million | ($0.95) | -9.75 |
WPP has higher revenue and earnings than Groupon.
Profitability
This table compares WPP and Groupon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WPP | N/A | N/A | N/A |
| Groupon | -2.50% | -24.63% | -3.88% |
Summary
WPP beats Groupon on 6 of the 11 factors compared between the two stocks.
About WPP
(Get Rating)
WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. It offers plans and creates marketing and branding campaigns; designs and produces advertisements across various media; and provides media buying services, such as strategy and business development, media investment, data and technology, and content. The company also offers public relations advisory services to clients who are seeking to communicate with a range of stakeholders from consumers to governments and the business and financial communities; and specialist agency services. WPP plc was founded in 1985 and is based in London, the United Kingdom.
About Groupon
(Get Rating)
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; and first-party goods inventory. 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.
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