Amazon.com vs DoorDash Which Is a Smarter Choice?

Amazon.com Inc. and DoorDash Inc. are two powerhouse companies in the e-commerce and food delivery industries, respectively. Amazon, known for its vast online marketplace and diverse array of products, has seen exponential growth in recent years. On the other hand, DoorDash has dominated the food delivery market, especially during the COVID-19 pandemic. Both companies have experienced significant fluctuations in their stock prices, attracting investors seeking high potential returns. This comparison delves into the performance and potential of Amazon.com versus DoorDash stocks.

Amazon.com or DoorDash?

When comparing Amazon.com 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 Amazon.com 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. Amazon.com 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. Amazon.com 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 Amazon.com P/E ratio at 42.66 and DoorDash's P/E ratio at -406.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.21 while DoorDash's P/B ratio is 9.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and DoorDash's ROE at -2.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $199.62 for Amazon.com and $169.10 for DoorDash. Over the past year, Amazon.com's prices ranged from $141.50 to $215.90, with a yearly change of 52.58%. DoorDash's prices fluctuated between $92.56 and $178.16, with a yearly change of 92.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.