Best Buy vs DoorDash Which Is a Smarter Choice?

Investors looking to capitalize on e-commerce and delivery services have likely considered both Best Buy and DoorDash stocks. Best Buy, a well-established retailer known for its electronics and appliances, has shown resilience in the face of economic challenges. On the other hand, DoorDash, a newcomer in the market, has rapidly grown to become a prominent player in the food delivery industry. Both companies present unique opportunities for investors, each with their pros and cons that must be carefully considered before making an investment decision.

Best Buy or DoorDash?

When comparing Best Buy 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 Best Buy 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. Best Buy has a dividend yield of 5.19%, while DoorDash has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.81%. 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 Best Buy P/E ratio at 15.46 and DoorDash's P/E ratio at -423.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 6.27 while DoorDash's P/B ratio is 9.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.81% and DoorDash's ROE at -2.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.09 for Best Buy and $173.58 for DoorDash. Over the past year, Best Buy's prices ranged from $62.92 to $103.71, with a yearly change of 64.83%. DoorDash's prices fluctuated between $90.87 and $177.30, with a yearly change of 95.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.