DoorDash vs GameStop

Both DoorDash and GameStop have captured the attention of investors in recent months, but for vastly different reasons. DoorDash, a leading food delivery service, has thrived during the pandemic as demand for delivery services soared. On the other hand, GameStop, a struggling brick-and-mortar video game retailer, experienced a massive surge in its stock price fueled by a retail investor movement on social media. Both stocks present unique opportunities and risks for investors seeking short-term gains or long-term growth potential.

DoorDash or GameStop?

When comparing DoorDash and GameStop, 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 GameStop.

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 GameStop 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, GameStop 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 -150.14 and GameStop's P/E ratio at 193.38. 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 8.53 while GameStop's P/B ratio is 1.87.

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 GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -5.91% and GameStop's ROE at 2.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $143.37 for DoorDash and $20.98 for GameStop. Over the past year, DoorDash's prices ranged from $69.90 to $150.29, with a yearly change of 115.01%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.