Comparing Montague International (OTCMKTS:MIHL) and Groupon (NASDAQ:GRPN)

Montague International (OTCMKTS:MIHL) and Groupon (NASDAQ:GRPN) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Earnings & Valuation

This table compares Montague International and Groupon”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montague International	N/A	N/A	N/A	N/A	N/A
Groupon	$498.42 million	1.16	-$83.52 million	($2.12)	-7.02

Montague International has higher earnings, but lower revenue than Groupon.

Volatility and Risk

Montague International has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Groupon has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Profitability

This table compares Montague International and Groupon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montague International	N/A	N/A	N/A
Groupon	-16.76%	-717.37%	-13.09%

Analyst Recommendations

This is a breakdown of recent ratings for Montague International and Groupon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montague International	0	0	0	0	0.00
Groupon	2	1	2	0	2.00

Groupon has a consensus target price of $33.67, indicating a potential upside of 126.10%. Given Groupon’s stronger consensus rating and higher possible upside, analysts clearly believe Groupon is more favorable than Montague International.

Insider & Institutional Ownership

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

Summary

Groupon beats Montague International on 6 of the 10 factors compared between the two stocks.

About Montague International

Montague International Holding Ltd., through its subsidiaries, engages in the businesses of financial services, energy, mining, entertainment, healthcare, consumer, industrial trade, and business development in the European Union, the Russian Federation, Latin America, and the United States. It offers investment advisory services and other investment solutions to corporate clients and high net worth individuals. The company also provides securities brokerage/dealership services; owns and operates a gold mining project; and designs, manufactures, and installs modular oil refining plants. In addition, it engages in real estate development business, as well as owns and operates entertainment centers, such as clubs. Montague International Holding Ltd. was formerly known as High Tech Crime Solutions Inc. and changed its name to Montague International Holding Ltd. in July 2012. The company was incorporated in 2009 and is based in Philadelphia, Pennsylvania. Montague International Holding Ltd. is a former subsidiary of LIGATT Security International, Inc.

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.