Analyzing DoorDash (NASDAQ:DASH) and Paysafe (NYSE:PSFE)

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

Analyst Recommendations

This is a summary of current ratings and price targets for DoorDash and Paysafe, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	9	25	0	2.74
Paysafe	2	2	0	0	1.50

DoorDash currently has a consensus price target of $176.97, suggesting a potential downside of 3.02%. Paysafe has a consensus price target of $19.50, suggesting a potential upside of 4.06%. Given Paysafe’s higher probable upside, analysts clearly believe Paysafe is more favorable than DoorDash.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoorDash	-1.69%	-2.41%	-1.48%
Paysafe	-1.38%	12.92%	2.25%

Earnings and Valuation

This table compares DoorDash and Paysafe”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$8.64 billion	8.78	-$558.00 million	($0.45)	-405.51
Paysafe	$1.60 billion	0.71	-$20.25 million	($0.38)	-49.31

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

Volatility and Risk

DoorDash has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Institutional & Insider Ownership

90.6% of DoorDash shares are owned by institutional investors. Comparatively, 54.4% of Paysafe shares are owned by institutional investors. 7.9% of DoorDash shares are owned by 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.

Summary

Paysafe beats DoorDash on 8 of the 14 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 Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.