DoorDash (NASDAQ:DASH) and Riskified (NYSE:RSKD) Critical Review

DoorDash (NASDAQ:DASH) and Riskified (NYSE:RSKD) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Volatility & Risk

DoorDash has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

90.6% of DoorDash shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 7.9% of DoorDash shares are held by company insiders. Comparatively, 17.4% of Riskified shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$9.61 billion	6.04	-$558.00 million	($1.08)	-131.42
Riskified	$297.61 million	2.71	-$59.03 million	($0.31)	-14.58

Riskified has lower revenue, but higher earnings than DoorDash. DoorDash is trading at a lower price-to-earnings ratio than Riskified, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DoorDash and Riskified’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%
Riskified	-14.57%	-8.33%	-6.82%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DoorDash and Riskified, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	10	23	0	2.70
Riskified	1	5	2	0	2.13

DoorDash currently has a consensus price target of $146.44, indicating a potential upside of 3.18%. Riskified has a consensus price target of $6.03, indicating a potential upside of 33.43%. Given Riskified’s higher probable upside, analysts clearly believe Riskified is more favorable than DoorDash.

Summary

DoorDash beats Riskified on 9 of the 13 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 Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.