DoorDash vs Lyft Which Is More Promising?

DoorDash and Lyft are two popular companies in the technology sector that have seen significant growth in recent years. DoorDash, a food delivery service, has gained traction among consumers looking for convenient meal options, while Lyft, a ride-sharing service, has revolutionized the transportation industry. Both companies have gone public and their stocks have generated interest among investors. This comparison will explore the differences between DoorDash and Lyft stocks, analyzing their performance, growth potential, and market outlook.

DoorDash or Lyft?

When comparing DoorDash and Lyft, 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 Lyft.

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 Lyft 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, Lyft 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 -423.70 and Lyft's P/E ratio at -97.41. 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 9.63 while Lyft's P/B ratio is 9.69.

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 Lyft's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -2.41% and Lyft's ROE at -11.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.44 for DoorDash and $14.85 for Lyft. Over the past year, DoorDash's prices ranged from $93.33 to $181.30, with a yearly change of 94.26%. Lyft's prices fluctuated between $8.93 and $20.82, with a yearly change of 133.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.