Yelp vs Zomato Which Is Superior?

Yelp and Zomato are two prominent companies in the online restaurant review industry, competing for customers and investors alike. While Yelp is a well-established player in the US market, Zomato has seen rapid growth in international markets, particularly in India and Southeast Asia. Both companies offer unique features and services to users, but their stock performances have varied. Investors often weigh factors such as user engagement, revenue growth, and market penetration when comparing Yelp and Zomato stocks.

Yelp or Zomato?

When comparing Yelp 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 Yelp 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. Yelp 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. Yelp 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 Yelp P/E ratio at 22.49 and Zomato's P/E ratio at 350.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yelp P/B ratio is 3.59 while Zomato's P/B ratio is 12.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yelp has seen a 5-year revenue growth of 0.82%, while Zomato's is 7.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yelp's ROE at 16.02% and Zomato's ROE at 3.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.91 for Yelp and ₹291.80 for Zomato. Over the past year, Yelp's prices ranged from $32.56 to $48.99, with a yearly change of 50.46%. Zomato's prices fluctuated between ₹114.15 and ₹304.70, with a yearly change of 166.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.