Lyft vs Uber Technologies Which Is More Lucrative?

Lyft and Uber Technologies are two prominent ride-sharing companies that have revolutionized the way people commute. Both companies have established themselves as leaders in the transportation industry, offering convenient and affordable services through their innovative mobile apps. As publicly traded companies, investors have the opportunity to take part in the success of Lyft and Uber by purchasing their stocks. This comparison will analyze the performance and potential of Lyft and Uber Technologies stocks, giving insights into which investment option may be more lucrative.

Lyft or Uber Technologies?

When comparing Lyft and Uber Technologies, 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 Lyft and Uber Technologies.

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. Lyft has a dividend yield of -%, while Uber Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lyft reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Uber Technologies 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 Lyft P/E ratio at -102.97 and Uber Technologies's P/E ratio at 31.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lyft P/B ratio is 10.25 while Uber Technologies's P/B ratio is 9.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lyft has seen a 5-year revenue growth of 0.51%, while Uber Technologies's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lyft's ROE at -11.52% and Uber Technologies's ROE at 35.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.12 for Lyft and $65.06 for Uber Technologies. Over the past year, Lyft's prices ranged from $8.93 to $20.82, with a yearly change of 133.28%. Uber Technologies's prices fluctuated between $54.84 and $87.00, with a yearly change of 58.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.