Analyzing DoorDash (NASDAQ:DASH) & Wyndham Hotels & Resorts (NYSE:WH)

Wyndham Hotels & Resorts (NYSE:WH) and DoorDash (NASDAQ:DASH) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.43 billion	3.64	$193.00 million	$2.72	25.75
DoorDash	$13.72 billion	6.11	$935.00 million	$1.91	101.24

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

Insider & Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 90.6% of DoorDash shares are held by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are held by company insiders. Comparatively, 44.9% of DoorDash shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Wyndham Hotels & Resorts and DoorDash, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	5	8	0	2.62
DoorDash	1	8	26	1	2.75

Wyndham Hotels & Resorts presently has a consensus target price of $95.64, suggesting a potential upside of 36.53%. DoorDash has a consensus target price of $257.47, suggesting a potential upside of 33.16%. Given Wyndham Hotels & Resorts’ higher probable upside, equities research analysts clearly believe Wyndham Hotels & Resorts is more favorable than DoorDash.

Volatility & Risk

Wyndham Hotels & Resorts has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Profitability

This table compares Wyndham Hotels & Resorts and DoorDash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	14.67%	74.22%	8.58%
DoorDash	5.29%	8.48%	4.37%

Summary

DoorDash beats Wyndham Hotels & Resorts on 9 of the 15 factors compared between the two stocks.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.

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.