GRPN vs AMZN

For growth investors, Amazon.

com, Inc. (AMZN) is the stronger pick with 12. 4% revenue growth year-over-year, versus 1. 2% for Groupon, Inc. (GRPN). Amazon. com, Inc. (AMZN) offers the better valuation at 38. 3x trailing P/E (35. 3x forward), making it the more compelling value choice. Analysts rate Amazon. com, Inc. (AMZN) a "Buy" — based on 94 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Amazon.

com, Inc. is actually cheaper at 35. 3x.

Over the past 5 years, Amazon.

com, Inc. (AMZN) delivered a total return of +66. 3%, compared to -67. 6% for Groupon, Inc. (GRPN). Over 10 years, the gap is even starker: AMZN returned +715. 9% versus GRPN's -75. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Amazon.

com, Inc. (AMZN) is the lower-risk stock at 1. 51β versus Groupon, Inc. 's 1. 78β — meaning GRPN is approximately 18% more volatile than AMZN relative to the S&P 500.

By revenue growth (latest reported year), Amazon.

com, Inc. (AMZN) is pulling ahead at 12. 4% versus 1. 2% for Groupon, Inc. (GRPN). On earnings-per-share growth, the picture is similar: Amazon. com, Inc. grew EPS 29. 7% year-over-year, compared to -37. 7% for Groupon, Inc.. Over a 3-year CAGR, AMZN leads at 11. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Amazon.

com, Inc. (AMZN) is the more profitable company, earning 10. 8% net margin versus -16. 8% for Groupon, Inc. — meaning it keeps 10. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMZN leads at 11. 2% versus 2. 6% for GRPN. At the gross margin level — before operating expenses — GRPN leads at 90. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Amazon.

com, Inc. (AMZN) trades at 35. 3x forward P/E versus 59. 4x for Groupon, Inc. — 24. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GRPN: 59. 3% to $25. 25.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Amazon.

com, Inc. (AMZN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+715. 9% 10Y return). Groupon, Inc. (GRPN) carries a higher beta of 1. 78 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AMZN: +715. 9%, GRPN: -75. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (GRPN (Communication Services) and AMZN (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.