DoorDash (NASDAQ:DASH) vs. Yirendai (NYSE:YRD) Critical Comparison

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

Analyst Ratings

This is a breakdown of recent ratings for DoorDash and Yirendai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	9	26	1	2.78
Yirendai	0	1	0	0	2.00

DoorDash presently has a consensus price target of $263.89, indicating a potential upside of 49.69%. Given DoorDash’s stronger consensus rating and higher probable upside, research analysts plainly believe DoorDash is more favorable than Yirendai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoorDash	6.82%	10.15%	5.49%
Yirendai	20.19%	12.66%	8.93%

Volatility and Risk

DoorDash has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$13.72 billion	5.54	$935.00 million	$2.12	83.16
Yirendai	$795.41 million	0.41	$216.77 million	$1.99	1.92

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

Institutional and Insider Ownership

90.6% of DoorDash shares are owned by institutional investors. Comparatively, 2.0% of Yirendai shares are owned by institutional investors. 5.8% of DoorDash shares are owned by company insiders. Comparatively, 42.2% of Yirendai shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

DoorDash beats Yirendai on 11 of the 15 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 Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.