DoorDash (NASDAQ:DASH – Get Free Report) and Wyndham Hotels & Resorts (NYSE:WH – Get Free Report) are both consumer discretionary 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.
Risk & Volatility
DoorDash has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Wyndham Hotels & Resorts has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
Earnings & Valuation
This table compares DoorDash and Wyndham Hotels & Resorts”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DoorDash | $13.72 billion | 6.11 | $935.00 million | $1.91 | 101.24 |
| Wyndham Hotels & Resorts | $1.43 billion | 3.64 | $193.00 million | $2.72 | 25.75 |
DoorDash has higher revenue and earnings than Wyndham Hotels & Resorts. Wyndham Hotels & Resorts is trading at a lower price-to-earnings ratio than DoorDash, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for DoorDash and Wyndham Hotels & Resorts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DoorDash | 1 | 8 | 26 | 1 | 2.75 |
| Wyndham Hotels & Resorts | 0 | 5 | 8 | 0 | 2.62 |
DoorDash presently has a consensus target price of $257.47, suggesting a potential upside of 33.16%. Wyndham Hotels & Resorts has a consensus target price of $95.64, suggesting a potential upside of 36.53%. Given Wyndham Hotels & Resorts’ higher possible upside, analysts clearly believe Wyndham Hotels & Resorts is more favorable than DoorDash.
Insider & Institutional Ownership
90.6% of DoorDash shares are owned by institutional investors. Comparatively, 93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. 44.9% of DoorDash shares are owned by insiders. Comparatively, 2.3% of Wyndham Hotels & Resorts 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.
Profitability
This table compares DoorDash and Wyndham Hotels & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DoorDash | 5.29% | 8.48% | 4.37% |
| Wyndham Hotels & Resorts | 14.67% | 74.22% | 8.58% |
Summary
DoorDash beats Wyndham Hotels & Resorts on 9 of the 15 factors compared between the two stocks.
About DoorDash
DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.
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