Groupon vs DoorDash Which Is a Smarter Choice?

Groupon and DoorDash are two popular companies in the online discount and food delivery industries respectively. Both companies have seen significant growth in recent years, with their stocks attracting the attention of investors. Groupon offers discounted deals on a wide range of products and services, while DoorDash focuses on delivering food from restaurants to customers' doors. Investors are comparing the performance of these two stocks to determine which one presents a better investment opportunity in the long run.

Groupon or DoorDash?

When comparing Groupon and DoorDash, 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 Groupon and DoorDash.

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. Groupon has a dividend yield of -%, while DoorDash has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Groupon reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, DoorDash 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 Groupon P/E ratio at 26.64 and DoorDash's P/E ratio at -428.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Groupon P/B ratio is 12.87 while DoorDash's P/B ratio is 9.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Groupon has seen a 5-year revenue growth of -0.82%, while DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 95.71% and DoorDash's ROE at -2.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.60 for Groupon and $176.13 for DoorDash. Over the past year, Groupon's prices ranged from $7.75 to $19.56, with a yearly change of 152.39%. DoorDash's prices fluctuated between $93.33 and $181.30, with a yearly change of 94.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.