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Better Buy: Groupon vs. New York Community Bancorp

By Mark Reeth and Patrick Morris - Mar 23, 2014 at 10:00AM

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We've collected the most popular companies amongst Fool.com readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool's Better Buy Tournament.

In today's match-up of The Motley Fool's Better-Buy Tournament, Groupon squares off against New York Community Bancorp in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks, with the winner determined by you, the readers.

Motley Fool consumer-goods editor Mark Reeth thinks Groupon ( GRPN -3.34% ) is about to see a lot of growth thanks to the development of its Groupon Goods marketplace. There are only a few thousand items for sale in the marketplace, but as Groupon guides more users to the service, they'll be sure to add more things to the shelves. Getting users to the marketplace shouldn't be that hard for the company, since half of all users accessed the site through mobile devices, meaning they don't have to be in front of a computer to make a purchase. Between that and the company's stronger balance sheet thanks to decreased SG&A costs, Groupon looks like a great growth pick. 

Imagine a company that has delivered a remarkable return of 4,300% since its IPO in 1993, versus a 500% return of the S&P 500. Sound too good to be true? It isn't, according to Motley Fool analyst Patrick Morris. And while you may imagine it's a technology firm, it's actually the regional banking titan New York Community Bancorp ( NYCB -1.67% ).

When you consider its remarkable discipline which has led to astounding growth, a great return on tangible equity of 16%, a reasonable valuation, and astounding safety, you'd be hard pressed to find a better buy in March or any other month, Patrick says.

Watch these analysts square off in the following video, and then vote for a winner. Then check out the other companies in The Motley Fool's Better-Buy Bracket

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Cast your vote in the poll below the video!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

New York Community Bancorp, Inc. Stock Quote
New York Community Bancorp, Inc.
NYCB
$11.78 (-1.67%) $0.20
Groupon, Inc. Stock Quote
Groupon, Inc.
GRPN
$19.97 (-3.34%) $0.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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