DoorDash vs Groupon Which Is a Smarter Choice?

DoorDash and Groupon are two widely recognized companies in the tech industry, each offering unique services to consumers. DoorDash is a food delivery service that has seen exponential growth in recent years, particularly during the pandemic as more people turned to online food ordering. Groupon, on the other hand, is a platform that offers discounted deals on various products and services. Both companies have seen fluctuations in their stock prices, making them interesting options for investors looking to diversify their portfolio. In this comparison, we will analyze the differences between DoorDash and Groupon stocks to help you make an informed investment decision.

DoorDash or Groupon?

When comparing DoorDash and Groupon, 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 Groupon.

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 Groupon 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, Groupon 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 Groupon's P/E ratio at 25.65. 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 Groupon's P/B ratio is 12.39.

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 Groupon's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -2.41% and Groupon's ROE at 95.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $171.27 for DoorDash and $11.26 for Groupon. Over the past year, DoorDash's prices ranged from $93.33 to $181.30, with a yearly change of 94.26%. Groupon's prices fluctuated between $7.75 and $19.56, with a yearly change of 152.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.