Both Groupon Inc. (NASDAQ:GRPN) and GrubHub Inc. (NYSE:GRUB) compete on a level playing field in the Internet Information Providers industry. We will evaluate their performance with regards to profitability, analyst recommendations, risk, institutional ownership, dividends, earnings and valuation.

Valuation & Earnings

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groupon Inc.	2.64B	0.77	11.08M	-0.02	0.00
GrubHub Inc.	1.01B	6.35	78.48M	0.85	91.43

Demonstrates Groupon Inc. and GrubHub Inc. earnings per share (EPS), top-line revenue and valuation.

Profitability

Table 2 represents Groupon Inc. (NASDAQ:GRPN) and GrubHub Inc. (NYSE:GRUB)’s return on equity, net margins and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groupon Inc.	-0.42%	-3.3%	-0.7%
GrubHub Inc.	7.77%	10%	7.4%

Volatility and Risk

Groupon Inc.’s 1.45 beta indicates that its volatility is 45.00% more volatile than that of Standard and Poor’s 500. GrubHub Inc.’s 25.00% more volatile than Standard and Poor’s 500 which is a result of the 1.25 beta.

Liquidity

The Current Ratio and a Quick Ratio of Groupon Inc. are 1 and 1. Competitively, GrubHub Inc. has 2.3 and 2.3 for Current and Quick Ratio. GrubHub Inc.’s better ability to pay short and long-term obligations than Groupon Inc.

Analyst Ratings

Recommendations and Ratings for Groupon Inc. and GrubHub Inc. can be find in next table.

	Sell Ratings	Hold Ratings	Buy Ratings	Rating Score
Groupon Inc.	0	3	1	2.25
GrubHub Inc.	0	5	8	2.62

The upside potential is 18.72% for Groupon Inc. with average target price of $4.25. On the other hand, GrubHub Inc.’s potential upside is 59.07% and its average target price is $111.78. Based on the results given earlier, GrubHub Inc. is looking more favorable than Groupon Inc., analysts opinion.

Institutional and Insider Ownership

Institutional investors held 64.5% of Groupon Inc. shares and 0% of GrubHub Inc. shares. Groupon Inc.’s share held by insiders are 1.1%. Insiders Competitively, held 0.2% of GrubHub Inc. shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

	Performance (W)	Performance (M)	Performance (Q)	Performance (HY)	Performance (Y)	Performance (YTD)
Groupon Inc.	1.51%	-10.61%	5.97%	-23.76%	-20.14%	5.31%
GrubHub Inc.	-4.49%	-3%	-2.59%	-45.46%	-20.05%	1.54%

For the past year Groupon Inc. has stronger performance than GrubHub Inc.

Summary

GrubHub Inc. beats Groupon Inc. on 11 of the 13 factors.

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America, Europe, the Middle East, Africa, 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 provides 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 their mobile devices; emails; affiliate channels; display advertising; and television and radio advertising. 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. Groupon, Inc. is a subsidiary of The Point, LLC.

GrubHub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 50,000 local restaurants with diners in approximately 1,100 cities. It offers GrubHub and Seamless mobile applications and mobile Websites for iPhone, Android, iPad, Apple Watch, and Apple TV devices; and operates GrubHub and Seamless Websites through grubhub.com and seamless.com. The company also provides Corporate program that helps businesses address inefficiencies in food ordering and associated billing; and delivery services for restaurants on its platform. In addition, it offers Allmenus.com and MenuPages.com, which provide an aggregated database of approximately 415,000 menus from restaurants in 50 states; Grubhub for Restaurants that allows it to monitor orders through the takeout process; and Website design and hosting services for restaurants. The company was formerly known as GrubHub Seamless Inc. and changed its name to GrubHub Inc. in February 2014. GrubHub Inc. was founded in 1999 and is headquartered in Chicago, Illinois.