DoorDash vs Airbnb Which Is a Better Investment?

DoorDash and Airbnb are two popular companies that have taken the markets by storm in recent years. DoorDash, a food delivery service, and Airbnb, a platform for short-term rentals, have both experienced significant growth and success. Investors are eager to compare the performance of these two tech giants, particularly in the wake of the COVID-19 pandemic which saw a surge in demand for their services. This article will delve into the key differences and similarities between DoorDash and Airbnb stocks, analyzing their potential for future growth and profitability.

DoorDash or Airbnb?

When comparing DoorDash and Airbnb, 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 DoorDash and Airbnb.

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. DoorDash has a dividend yield of -%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DoorDash reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Airbnb 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 DoorDash P/E ratio at -428.67 and Airbnb's P/E ratio at 47.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DoorDash P/B ratio is 9.74 while Airbnb's P/B ratio is 10.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DoorDash has seen a 5-year revenue growth of 20.38%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -2.41% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $176.13 for DoorDash and $136.56 for Airbnb. Over the past year, DoorDash's prices ranged from $93.33 to $181.30, with a yearly change of 94.26%. Airbnb's prices fluctuated between $110.38 and $170.10, with a yearly change of 54.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.