Contrasting LY (OTCMKTS:YAHOY) & Coupang (NYSE:CPNG)

Coupang (NYSE:CPNG) and LY (OTCMKTS:YAHOY) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Coupang and LY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coupang	-2.16%	-8.77%	-2.00%
LY	6.24%	5.49%	1.80%

Risk and Volatility

Coupang has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, LY has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Coupang and LY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	2	4	5	0	2.27
LY	0	2	0	0	2.00

Coupang currently has a consensus target price of $24.06, indicating a potential upside of 65.22%. Given Coupang’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Coupang is more favorable than LY.

Earnings & Valuation

This table compares Coupang and LY”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$35.46 billion	0.74	$208.00 million	($0.43)	-33.87
LY	$13.53 billion	1.80	$1.28 billion	$0.39	18.10

LY has lower revenue, but higher earnings than Coupang. Coupang is trading at a lower price-to-earnings ratio than LY, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.7% of Coupang shares are owned by institutional investors. 12.8% of Coupang shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

About LY

LY Corporation engages in the online advertising and e-commerce businesses in Japan. The company provides LINE, a communication app; and Yahoo! JAPAN, an internet service that offers search, news, weather, shopping, auction, and other services. It also offers reuse, membership, and payment-related services. The company was formerly known as Z Holdings Corporation and changed its name to LY Corporation in October 2023. LY Corporation was founded in 1996 and is headquartered in Chiyoda, Japan. LY Corporation operates as a subsidiary of A Holdings Corporation.