Financial Analysis: BuzzFeed (NASDAQ:BZFDW) and DoorDash (NASDAQ:DASH)

DoorDash (NASDAQ:DASH) and BuzzFeed (NASDAQ:BZFDW) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares DoorDash and BuzzFeed”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$9.61 billion	5.95	-$558.00 million	($1.08)	-129.37
BuzzFeed	$227.33 million	N/A	N/A	N/A	N/A

BuzzFeed has lower revenue, but higher earnings than DoorDash.

Profitability

This table compares DoorDash and BuzzFeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoorDash	-4.24%	-5.91%	-3.69%
BuzzFeed	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	11	20	0	2.65
BuzzFeed	0	0	0	0	N/A

DoorDash currently has a consensus price target of $143.00, suggesting a potential upside of 2.35%. Given DoorDash’s higher probable upside, research analysts plainly believe DoorDash is more favorable than BuzzFeed.

Institutional and Insider Ownership

90.6% of DoorDash shares are owned by institutional investors. 7.9% of DoorDash shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

DoorDash beats BuzzFeed on 5 of the 8 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 BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.