eBay (NASDAQ:EBAY – Get Rating) and DoorDash (NYSE:DASH – Get Rating) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Analyst Recommendations
This is a summary of recent ratings for eBay and DoorDash, as provided by MarketBeat.com.
Get eBay alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| eBay | 2 | 14 | 7 | 0 | 2.22 |
| DoorDash | 2 | 8 | 10 | 1 | 2.48 |
eBay presently has a consensus target price of $49.92, suggesting a potential upside of 8.43%. DoorDash has a consensus target price of $80.95, suggesting a potential upside of 41.18%. Given DoorDash's stronger consensus rating and higher possible upside, analysts clearly believe DoorDash is more favorable than eBay.
Earnings & Valuation
This table compares eBay and DoorDash's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| eBay | $9.80 billion | 2.52 | -$1.27 billion | ($2.13) | -21.62 |
| DoorDash | $6.58 billion | 3.42 | -$1.37 billion | ($3.62) | -15.84 |
eBay has higher revenue and earnings than DoorDash. eBay is trading at a lower price-to-earnings ratio than DoorDash, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares eBay and DoorDash's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| eBay | -12.96% | 34.14% | 9.22% |
| DoorDash | -20.74% | -15.12% | -10.74% |
Risk & Volatility
eBay has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.
Insider & Institutional Ownership
85.5% of eBay shares are owned by institutional investors. Comparatively, 72.7% of DoorDash shares are owned by institutional investors. 0.2% of eBay shares are owned by insiders. Comparatively, 15.5% of DoorDash shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
DoorDash beats eBay on 8 of the 15 factors compared between the two stocks.
About eBay
(Get Rating)
eBay, Inc. operates as a commerce company. The company platforms include online marketplace and its localized counterparts, including off-platform businesses in South Korea, Japan, and Turkey, as well as eBay's suite of mobile apps. The company technologies and services are designed to give buyers choice and a breadth of relevant inventory and to enable sellers worldwide to organize and offer their inventory for sale, virtually anytime and anywhere. The company was founded by Pierre M. Omidyar in September 1995 and is headquartered in San Jose, CA.
About DoorDash
(Get Rating)
DoorDash, Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. It operates DoorDash marketplace, which provides an array of services that enable merchants to solve mission-critical challenges, such as customer acquisition, delivery, insights and analytics, merchandising, payment processing, and customer support; and offers DoorDash Drive, a white-label logistics service; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was incorporated in 2013 and is headquartered in San Francisco, California.
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