DoorDash vs Zomato

DoorDash and Zomato are two prominent players in the food delivery industry, both offering convenient online platforms for customers to order from a wide range of restaurants. As their popularity continues to rise, investors are taking notice of their potential for growth and profitability. DoorDash, a US-based company, has gained significant market share in North America, while Zomato, an Indian company, has a strong presence in Asia. Both stocks have shown strong performance in recent years, but their unique business models and geographic focus present investors with different opportunities for growth and success.

DoorDash or Zomato?

When comparing DoorDash and Zomato, 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 Zomato.

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 Zomato 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, Zomato 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 Zomato's P/E ratio at 404.00. 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 Zomato's P/B ratio is 11.92.

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 Zomato's is 7.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DoorDash's ROE at -5.91% and Zomato's ROE at 3.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $143.37 for DoorDash and ₹276.10 for Zomato. Over the past year, DoorDash's prices ranged from $69.90 to $150.29, with a yearly change of 115.01%. Zomato's prices fluctuated between ₹101.25 and ₹298.25, with a yearly change of 194.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.