Loyalty Ventures (NASDAQ:LYLT – Get Rating) and DoorDash (NYSE:DASH – Get Rating) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Insider & Institutional Ownership
64.0% of Loyalty Ventures shares are held by institutional investors. Comparatively, 72.7% of DoorDash shares are held by institutional investors. 0.2% of Loyalty Ventures shares are held by insiders. Comparatively, 15.5% of DoorDash shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Get Loyalty Ventures alerts:Analyst Ratings
This is a breakdown of current ratings for Loyalty Ventures and DoorDash, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loyalty Ventures | 0 | 1 | 1 | 0 | 2.50 |
| DoorDash | 2 | 9 | 10 | 1 | 2.45 |
Loyalty Ventures currently has a consensus price target of $3.00, suggesting a potential upside of 59,900.00%. DoorDash has a consensus price target of $80.95, suggesting a potential upside of 31.38%. Given Loyalty Ventures' stronger consensus rating and higher probable upside, equities research analysts clearly believe Loyalty Ventures is more favorable than DoorDash.
Profitability
This table compares Loyalty Ventures and DoorDash's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loyalty Ventures | -68.27% | 8.58% | -0.26% |
| DoorDash | -20.74% | -15.12% | -10.74% |
Valuation and Earnings
This table compares Loyalty Ventures and DoorDash's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loyalty Ventures | $727.71 million | 0.00 | -$2.34 million | ($20.19) | 0.00 |
| DoorDash | $6.58 billion | 3.67 | -$1.37 billion | ($3.62) | -17.02 |
Loyalty Ventures has higher earnings, but lower revenue than DoorDash. DoorDash is trading at a lower price-to-earnings ratio than Loyalty Ventures, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Loyalty Ventures has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Summary
DoorDash beats Loyalty Ventures on 8 of the 15 factors compared between the two stocks.
About Loyalty Ventures
(Get Rating)
Loyalty Ventures Inc. provides consumer loyalty solutions. The company owns and operates the AIR MILES Reward Program, an end-to-end loyalty platform; and BrandLoyalty, a campaign-based loyalty solution for grocers and other high-frequency retailers. It also offers marketing, customer, and rewards and redemption management services for sponsors. The company helps financial services providers, retailers, and other consumer-facing businesses to create and increase customer loyalty across various touchpoints. Loyalty Ventures Inc. was incorporated in 2021 and is based in Plano, Texas.
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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