OpenDoor vs Compass Which Is Superior?

OpenDoor and Compass are both real estate technology companies that have been disrupting the traditional real estate industry. OpenDoor focuses on buying and selling homes directly to consumers, offering a streamlined and convenient experience. On the other hand, Compass operates as a real estate brokerage, connecting buyers and sellers with top agents and providing innovative tools and technology to enhance the home buying and selling process. Both companies have seen rapid growth and investor interest, but their approaches to the real estate market differ significantly.

OpenDoor or Compass?

When comparing OpenDoor and Compass, 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 OpenDoor and Compass.

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. OpenDoor has a dividend yield of -%, while Compass has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OpenDoor reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%.

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 OpenDoor P/E ratio at -81.44 and Compass's P/E ratio at -17.41. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OpenDoor P/B ratio is 3.99 while Compass's P/B ratio is 8.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OpenDoor has seen a 5-year revenue growth of -0.49%, while Compass's is 3.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OpenDoor's ROE at -4.50% and Compass's ROE at -49.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥611.00 for OpenDoor and $6.59 for Compass. Over the past year, OpenDoor's prices ranged from ¥554.00 to ¥1010.00, with a yearly change of 82.31%. Compass's prices fluctuated between $1.88 and $7.01, with a yearly change of 272.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.