Financial Analysis: RDE (NASDAQ:GIFT) vs. Coupang (NYSE:CPNG)

Coupang (NYSE:CPNG) and RDE (NASDAQ:GIFT) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Risk & Volatility

Coupang has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.72, indicating that its stock price is 172% less volatile than the S&P 500.

Valuation and Earnings

This table compares Coupang and RDE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$24.38 billion	1.85	$1.36 billion	$0.57	44.05
RDE	$97.01 million	0.40	N/A	N/A	N/A

Coupang has higher revenue and earnings than RDE.

Profitability

This table compares Coupang and RDE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coupang	3.57%	11.52%	3.12%
RDE	N/A	-62.87%	-38.24%

Institutional & Insider Ownership

83.7% of Coupang shares are held by institutional investors. 13.6% of Coupang shares are held by company insiders. Comparatively, 20.5% of RDE shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Coupang and RDE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	0	1	8	0	2.89
RDE	0	0	1	0	3.00

Coupang currently has a consensus price target of $27.78, suggesting a potential upside of 10.62%. RDE has a consensus price target of $4.00, suggesting a potential upside of 168.46%. Given RDE’s stronger consensus rating and higher probable upside, analysts clearly believe RDE is more favorable than Coupang.

Summary

Coupang beats RDE on 8 of the 11 factors compared between the two stocks.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.