Compass vs OpenDoor Which Is More Profitable?

Compass and OpenDoor are two innovative companies that have disrupted the traditional real estate industry. Compass is a technology-driven real estate platform that offers a variety of services to streamline the buying and selling process. OpenDoor, on the other hand, is an online real estate marketplace that allows homeowners to sell their homes quickly and easily. Both companies have shown impressive growth and have attracted investors' attention, but their business models and strategies differ significantly. Let's compare and contrast Compass vs OpenDoor stocks to determine which may be a better investment option.

Compass or OpenDoor?

When comparing Compass and OpenDoor, 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 Compass and OpenDoor.

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. Compass has a dividend yield of -%, while OpenDoor has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, OpenDoor 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 Compass P/E ratio at -17.41 and OpenDoor's P/E ratio at -81.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.04 while OpenDoor's P/B ratio is 3.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while OpenDoor's is -0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and OpenDoor's ROE at -4.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for Compass and ¥611.00 for OpenDoor. Over the past year, Compass's prices ranged from $1.88 to $7.01, with a yearly change of 272.87%. OpenDoor's prices fluctuated between ¥554.00 and ¥1010.00, with a yearly change of 82.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.