Contrasting LMP Automotive (OTCMKTS:LMPX) and Groupon (NASDAQ:GRPN)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for LMP Automotive and Groupon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LMP Automotive	0	0	0	0	0.00
Groupon	2	0	4	0	2.33

Groupon has a consensus target price of $29.80, indicating a potential upside of 29.79%. Given Groupon’s stronger consensus rating and higher probable upside, analysts plainly believe Groupon is more favorable than LMP Automotive.

Volatility and Risk

LMP Automotive has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Groupon has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares LMP Automotive and Groupon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LMP Automotive	N/A	N/A	N/A	N/A	N/A
Groupon	$487.75 million	1.90	-$59.03 million	($0.24)	-95.67

LMP Automotive has higher earnings, but lower revenue than Groupon.

Profitability

This table compares LMP Automotive and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LMP Automotive	N/A	N/A	N/A
Groupon	-1.89%	-19.61%	-1.45%

Insider & Institutional Ownership

90.1% of Groupon shares are held by institutional investors. 38.7% of LMP Automotive shares are held by company insiders. Comparatively, 35.7% of Groupon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Groupon beats LMP Automotive on 6 of the 10 factors compared between the two stocks.

About LMP Automotive

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. It primarily buys pre-owned automobiles primarily through auctions or directly from other automobile dealers, as well as new automobiles from manufacturers and distributors at fleet rates. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida.

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.