DoorDash vs Toast Which Is More Reliable?

DoorDash and Toast are two prominent players in the food delivery and restaurant software industries, respectively. Both companies have experienced significant growth in recent years, with DoorDash emerging as a leader in the delivery space and Toast dominating the restaurant technology sector. Investors looking to get exposure to these sectors may be considering investing in DoorDash or Toast stocks. In this comparison, we will analyze the performance and prospects of DoorDash versus Toast stocks to help investors make informed decisions.

DoorDash or Toast?

When comparing DoorDash and Toast, 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 Toast.

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 Toast 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, Toast 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 -420.19 and Toast's P/E ratio at -436.04. 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 9.55 while Toast's P/B ratio is 15.05.

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 Toast's is 4.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -2.41% and Toast's ROE at -3.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $170.51 for DoorDash and $35.87 for Toast. Over the past year, DoorDash's prices ranged from $86.33 to $175.14, with a yearly change of 102.87%. Toast's prices fluctuated between $13.77 and $38.40, with a yearly change of 178.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.