Head to Head Contrast: Ryohin Keikaku (OTCMKTS:RYKKY) & Groupon (NASDAQ:GRPN)

Groupon (NASDAQ:GRPN) and Ryohin Keikaku (OTCMKTS:RYKKY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Groupon and Ryohin Keikaku, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groupon	2	1	1	0	1.75
Ryohin Keikaku	0	1	0	0	2.00

Groupon presently has a consensus target price of $26.00, suggesting a potential upside of 32.72%. Given Groupon’s higher probable upside, equities research analysts clearly believe Groupon is more favorable than Ryohin Keikaku.

Valuation and Earnings

This table compares Groupon and Ryohin Keikaku”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groupon	$498.42 million	1.60	-$83.52 million	($3.11)	-6.30
Ryohin Keikaku	$5.28 billion	2.87	$340.67 million	$0.37	36.45

Ryohin Keikaku has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than Ryohin Keikaku, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Groupon and Ryohin Keikaku’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groupon	-25.26%	N/A	-20.28%
Ryohin Keikaku	N/A	N/A	N/A

Insider and Institutional Ownership

90.0% of Groupon shares are owned by institutional investors. 36.6% of Groupon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Ryohin Keikaku beats Groupon 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 Ryohin Keikaku

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.