Head to Head Comparison: First Acceptance (NASDAQ:HRTH) vs. Groupon (NASDAQ:GRPN)

Groupon (NASDAQ:GRPN) and First Acceptance (NASDAQ:HRTH) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Groupon and First Acceptance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Groupon 2 3 3 0 2.13
First Acceptance 0 0 1 0 3.00

Groupon presently has a consensus price target of $36.25, indicating a potential upside of 39.16%. Given Groupon’s higher probable upside, research analysts plainly believe Groupon is more favorable than First Acceptance.

Earnings and Valuation

This table compares Groupon and First Acceptance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Groupon $2.22 billion 0.34 -$22.38 million $0.40 65.13
First Acceptance N/A N/A N/A N/A N/A

First Acceptance has lower revenue, but higher earnings than Groupon.

Insider and Institutional Ownership

60.0% of Groupon shares are held by institutional investors. 14.0% of Groupon shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Groupon and First Acceptance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Groupon -12.00% -27.35% -4.90%
First Acceptance N/A N/A N/A

Summary

Groupon beats First Acceptance on 5 of the 9 factors compared between the two stocks.

Groupon Company Profile

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals in various categories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel, as well as discounted and market rates for hotel, airfare, and package deals. It offers its deal offerings to customers through Websites; search engines; mobile applications and mobile Web browsers, which enable consumers to browse, purchase, manage, and redeem deals on mobile devices; emails and push notifications; affiliate channels; social and display advertising; and offline marketing. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. The company was founded in 2008 and is headquartered in Chicago, Illinois.

First Acceptance Company Profile

Harte Hanks, Inc. provides various multi-channel marketing services in the United States and internationally. The company provides agency services, such as customer engagement solutions in direct and digital communications for consumer and business-to-business markets; digital services, including search engine management, display, digital analytics, Website development and design, digital strategy, social media, email, e-commerce, and interactive relationship management services; and database marketing and business-to-business lead generation solutions that offer insight and analytics, customer data integration, and marketing communications tools. It also provides direct marketing services, including digital printing, print on demand, advanced mail optimization, logistics and transportation optimization, tracking, commingling, shrink wrapping, and specialized mailing services, as well as custom kitting, print on demand, product recalls, and freight optimization services through its fulfillment centers; and operates teleservice workstations, which offer contact center solutions comprising speech, voice and video chat, integrated voice response, analytics, social cloud monitoring, and Web self-services. The company provides its services primarily to the retail, B2B, financial services, consumer, and healthcare vertical markets. Harte Hanks, Inc. was founded in 1923 and is headquartered in Austin, Texas.

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