Reviewing DoorDash (NASDAQ:DASH) & LivePerson (NASDAQ:LPSN)

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

Institutional & Insider Ownership

79.8% of LivePerson shares are owned by institutional investors. Comparatively, 90.6% of DoorDash shares are owned by institutional investors. 2.0% of LivePerson shares are owned by insiders. Comparatively, 5.8% of DoorDash shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LivePerson	-62.66%	-190.60%	-7.86%
DoorDash	6.57%	9.56%	5.61%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivePerson	$312.47 million	0.33	-$134.27 million	($2.00)	-0.54
DoorDash	$10.72 billion	9.71	$123.00 million	$1.80	135.46

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

Analyst Recommendations

This is a summary of current recommendations for LivePerson and DoorDash, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	0	2	0	0	2.00
DoorDash	0	13	22	1	2.67

LivePerson currently has a consensus price target of $1.00, indicating a potential downside of 6.54%. DoorDash has a consensus price target of $263.8824, indicating a potential upside of 8.23%. Given DoorDash’s stronger consensus rating and higher possible upside, analysts plainly believe DoorDash is more favorable than LivePerson.

Volatility & Risk

LivePerson has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Summary

DoorDash beats LivePerson on 15 of the 15 factors compared between the two stocks.

About LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

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.