GRPN vs IAC

For growth investors, Groupon, Inc.

(GRPN) is the stronger pick with 1. 2% revenue growth year-over-year, versus -37. 1% for IAC InterActive Corp. (IAC). Analysts rate IAC InterActive Corp. (IAC) a "Buy" — based on 33 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.

Over the past 5 years, IAC InterActive Corp.

(IAC) delivered a total return of -66. 4%, compared to -67. 6% for Groupon, Inc. (GRPN). Over 10 years, the gap is even starker: IAC returned +339. 6% 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), IAC InterActive Corp.

(IAC) is the lower-risk stock at 1. 10β versus Groupon, Inc. 's 1. 78β — meaning GRPN is approximately 63% more volatile than IAC relative to the S&P 500.

By revenue growth (latest reported year), Groupon, Inc.

(GRPN) is pulling ahead at 1. 2% versus -37. 1% for IAC InterActive Corp. (IAC). On earnings-per-share growth, the picture is similar: IAC InterActive Corp. grew EPS 79. 5% year-over-year, compared to -37. 7% for Groupon, Inc.. Over a 3-year CAGR, GRPN leads at -5. 9% 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.

IAC InterActive Corp.

(IAC) is the more profitable company, earning -4. 3% net margin versus -16. 8% for Groupon, Inc. — meaning it keeps -4. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GRPN leads at 2. 6% versus -4. 1% for IAC. 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, Groupon, Inc.

(GRPN) trades at 59. 4x forward P/E versus 107. 5x for IAC InterActive Corp. — 48. 0x 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, IAC InterActive Corp.

(IAC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 10), +339. 6% 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 (IAC: +339. 6%, 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 IAC (Technology)), 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.