DoorDash vs Fastly Which Is a Better Investment?

DoorDash and Fastly are two prominent companies in the tech industry with differing approaches to their respective markets. DoorDash, a leading food delivery platform, has seen tremendous growth during the pandemic as consumer habits have shifted towards online ordering. On the other hand, Fastly, a content delivery network provider, has faced challenges with recent outages affecting major websites. Both stocks have had their share of ups and downs, leaving investors wondering which one offers the best long-term investment opportunity.

DoorDash or Fastly?

When comparing DoorDash and Fastly, 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 Fastly.

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 Fastly 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, Fastly 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 -417.67 and Fastly's P/E ratio at -9.67. 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 9.49 while Fastly's P/B ratio is 1.48.

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 Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -2.41% and Fastly's ROE at -15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $171.27 for DoorDash and $10.12 for Fastly. Over the past year, DoorDash's prices ranged from $93.33 to $181.30, with a yearly change of 94.26%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.