Head-To-Head Review: Baidu (NASDAQ:BIDU) versus DoorDash (NASDAQ:DASH)

Baidu (NASDAQ:BIDU) and DoorDash (NASDAQ:DASH) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Baidu has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.

Valuation and Earnings

This table compares Baidu and DoorDash”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baidu	$129.08 billion	0.30	$799.00 million	$1.59	69.79
DoorDash	$13.72 billion	4.95	$935.00 million	$2.12	73.80

DoorDash has lower revenue, but higher earnings than Baidu. Baidu 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 Baidu and DoorDash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baidu	4.21%	5.63%	3.50%
DoorDash	6.82%	10.15%	5.49%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Baidu and DoorDash, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baidu	1	5	16	1	2.74
DoorDash	0	9	25	1	2.77

Baidu currently has a consensus target price of $158.05, indicating a potential upside of 42.44%. DoorDash has a consensus target price of $263.12, indicating a potential upside of 68.18%. Given DoorDash’s stronger consensus rating and higher probable upside, analysts clearly believe DoorDash is more favorable than Baidu.

Institutional and Insider Ownership

90.6% of DoorDash shares are held by institutional investors. 16.7% of Baidu shares are held by company insiders. Comparatively, 5.8% of DoorDash shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

DoorDash beats Baidu on 12 of the 14 factors compared between the two stocks.

About Baidu

Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

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.