Airbnb vs DoorDash Which Is Stronger?

Airbnb and DoorDash are both popular companies that offer innovative services in the sharing economy. Airbnb allows users to book unique accommodations around the world, while DoorDash provides food delivery services from a variety of restaurants. Both companies went public in late 2020, and their stocks have experienced significant fluctuations since then. Investors are divided on which stock offers a better long-term investment potential, with opinions varying on the growth potential and sustainability of each business model.

Airbnb or DoorDash?

When comparing Airbnb and DoorDash, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Airbnb and DoorDash.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Airbnb has a dividend yield of -%, while DoorDash has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Airbnb reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, DoorDash reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Airbnb P/E ratio at 33.65 and DoorDash's P/E ratio at 661.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Airbnb P/B ratio is 10.59 while DoorDash's P/B ratio is 10.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Airbnb has seen a 5-year revenue growth of 0.94%, while DoorDash's is 7.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airbnb's ROE at 32.29% and DoorDash's ROE at 1.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $139.21 for Airbnb and $191.02 for DoorDash. Over the past year, Airbnb's prices ranged from $110.38 to $170.10, with a yearly change of 54.10%. DoorDash's prices fluctuated between $99.32 and $215.25, with a yearly change of 116.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.