RideNow Group (NASDAQ:RDNW – Get Free Report) and Groupon (NASDAQ:GRPN – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Institutional & Insider Ownership
66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 90.1% of Groupon shares are owned by institutional investors. 54.7% of RideNow Group shares are owned by insiders. Comparatively, 35.7% of Groupon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for RideNow Group and Groupon, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RideNow Group | 1 | 2 | 0 | 0 | 1.67 |
| Groupon | 2 | 1 | 2 | 0 | 2.00 |
Profitability
This table compares RideNow Group and Groupon’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RideNow Group | -4.84% | -2,628.57% | -2.61% |
| Groupon | -16.76% | -717.37% | -13.09% |
Volatility & Risk
RideNow Group has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Groupon has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.
Valuation & Earnings
This table compares RideNow Group and Groupon”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RideNow Group | $1.08 billion | 0.22 | -$52.40 million | ($1.39) | -4.53 |
| Groupon | $498.42 million | 0.94 | -$83.52 million | ($2.12) | -5.40 |
RideNow Group has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than RideNow Group, indicating that it is currently the more affordable of the two stocks.
Summary
RideNow Group beats Groupon on 7 of the 13 factors compared between the two stocks.
About RideNow Group
RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.
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.
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