Head to Head Contrast: Riskified (NYSE:RSKD) and DoorDash (NASDAQ:DASH)

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

Analyst Ratings

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

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

Riskified currently has a consensus price target of $6.03, indicating a potential upside of 33.14%. DoorDash has a consensus price target of $146.91, indicating a potential upside of 1.41%. Given Riskified’s higher probable upside, analysts plainly believe Riskified is more favorable than DoorDash.

Volatility & Risk

Riskified has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Insider and Institutional Ownership

59.0% of Riskified shares are held by institutional investors. Comparatively, 90.6% of DoorDash shares are held by institutional investors. 17.4% of Riskified shares are held by company insiders. Comparatively, 7.9% of DoorDash 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.

Earnings and Valuation

This table compares Riskified and DoorDash”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskified	$297.61 million	2.71	-$59.03 million	($0.31)	-14.61
DoorDash	$9.61 billion	6.16	-$558.00 million	($1.08)	-134.13

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

	Net Margins	Return on Equity	Return on Assets
Riskified	-14.57%	-8.33%	-6.82%
DoorDash	-4.24%	-5.91%	-3.69%

Summary

DoorDash beats Riskified on 9 of the 14 factors compared between the two stocks.

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.

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.