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GRPN vs PLAY

GRPN
Groupon, Inc.
BEARISH
Price
$11.86
Market Cap
$483.4M
Sector
Communication Services
AI Confidence
85%
PLAY
Dave & Buster's Entertainment, Inc.
BEARISH
Price
$14.24
Market Cap
$494.7M
Sector
Communication Services
AI Confidence
95%

Valuation

P/E Ratio
GRPN
--
PLAY
--
Forward P/E
GRPN
6.74
PLAY
150.72
P/B Ratio
GRPN
-11.35
PLAY
5.43
P/S Ratio
GRPN
0.97
PLAY
0.24
EV/EBITDA
GRPN
35.42
PLAY
10.03

Profitability

Gross Margin
GRPN
90.79%
PLAY
39.82%
Operating Margin
GRPN
4.86%
PLAY
3.08%
Profit Margin
GRPN
-16.76%
PLAY
-2.32%
ROE
GRPN
--
PLAY
-41.1%
ROA
GRPN
1.26%
PLAY
1.9%

Growth

Revenue Growth
GRPN
1.8%
PLAY
-0.9%
Earnings Growth
GRPN
--
PLAY
--

Financial Health

Debt/Equity
GRPN
--
PLAY
39.09
Current Ratio
GRPN
0.97
PLAY
0.29
Quick Ratio
GRPN
0.86
PLAY
0.16

Dividends

Dividend Yield
GRPN
--
PLAY
--
Payout Ratio
GRPN
0.0%
PLAY
0.0%

AI Verdict

GRPN BEARISH

GRPN exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a negative Price-to-Book ratio of -11.35, indicating negative shareholder equity. While the company maintains a high gross margin (90.79%) and a low forward P/E (6.74), these are overshadowed by stagnant revenue growth (1.80%) and a net profit margin of -16.76%. Liquidity is tight with a current ratio of 0.97, and the technical trend is completely bearish. Despite optimistic analyst price targets, the fundamental health indicators suggest a high risk of insolvency or further devaluation.

Strengths
Exceptionally high gross margins (90.79%)
Low Price-to-Sales ratio (0.97) suggesting potential undervaluation of revenue
Positive operating margin (4.86%) indicating core business viability
Risks
Negative shareholder equity (P/B -11.35) is a critical solvency red flag
Weak Piotroski F-Score (2/9) indicates deteriorating financial health
Stagnant revenue growth (1.80%) suggests a lack of market expansion
PLAY BEARISH

The company exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a critical liquidity crisis with a Current Ratio of 0.29. Extreme leverage is evident in the Debt/Equity ratio of 39.09, which, combined with negative ROE (-41.10%) and negative profit margins, suggests a high risk of insolvency. Despite a 'Buy' analyst recommendation and a low Price/Sales ratio, the fundamental data shows consistent earnings misses (0/4 beats in the last year) and a crashing YoY EPS growth of -150.7%.

Strengths
Low Price/Sales ratio (0.24) suggests the stock is cheap relative to revenue
Gross Margin remains healthy at 39.82%
Analyst target price ($18.88) provides a theoretical upside of ~32%
Risks
Severe liquidity risk with a Current Ratio of 0.29 and Quick Ratio of 0.16
Extreme financial leverage with a Debt/Equity ratio of 39.09
Consistent failure to meet earnings estimates (Average surprise -83.83% over last 4 quarters)

Compare Another Pair

GRPN vs PLAY: Head-to-Head Comparison

This page compares Groupon, Inc. (GRPN) and Dave & Buster's Entertainment, Inc. (PLAY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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