CAR vs DoorDash Which Is a Smarter Choice?

Investors are constantly seeking opportunities to capitalize on emerging trends and industries. In recent years, the rise of delivery services like DoorDash and the evolution of the automotive industry towards electric vehicles have generated significant interest among investors. Comparing the stocks of established car companies like Ford and Tesla with DoorDash can provide insight into where the market is heading. Understanding the potential growth and risks associated with these stocks can help investors make informed decisions in their portfolios.

CAR or DoorDash?

When comparing CAR 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 CAR 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. CAR has a dividend yield of 1.82%, while DoorDash has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAR reports a 5-year dividend growth of 7.68% year and a payout ratio of 98.63%. 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 CAR P/E ratio at 60.60 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. CAR P/B ratio is 5.25 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, CAR has seen a 5-year revenue growth of 0.42%, while DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAR's ROE at 8.54% and DoorDash's ROE at -2.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$40.01 for CAR and $173.58 for DoorDash. Over the past year, CAR's prices ranged from A$26.79 to A$40.68, with a yearly change of 51.85%. 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.