DoorDash vs Sysco Which Should You Buy?

DoorDash and Sysco are two prominent companies in the food delivery and distribution industry, respectively. DoorDash is known for its innovative technology platform that connects consumers with restaurants for convenient and efficient meal delivery services. On the other hand, Sysco is a leading global distributor of food and related products to restaurants, healthcare, and hospitality industries. Both companies operate in the same industry but have different business models and growth strategies, making them interesting stocks to compare and analyze.

DoorDash or Sysco?

When comparing DoorDash and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.73%. 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, Sysco reports a 5-year dividend growth of 5.30% year and a payout ratio of 52.03%.

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 661.46 and Sysco's P/E ratio at 18.90. 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 10.43 while Sysco's P/B ratio is 18.14.

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 7.34%, while Sysco's is 0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at 1.67% and Sysco's ROE at 94.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $191.02 for DoorDash and $74.14 for Sysco. Over the past year, DoorDash's prices ranged from $99.32 to $215.25, with a yearly change of 116.72%. Sysco's prices fluctuated between $69.03 and $82.33, with a yearly change of 19.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.