Comparing DoorDash (NASDAQ:DASH) & Square Enix (OTCMKTS:SQNXF)

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

Risk and Volatility

DoorDash has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DoorDash	6.57%	9.56%	5.61%
Square Enix	5.92%	5.88%	4.72%

Insider & Institutional Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$11.90 billion	8.94	$123.00 million	$1.80	138.26
Square Enix	$2.13 billion	4.11	$161.13 million	$1.03	70.87

Square Enix has lower revenue, but higher earnings than DoorDash. Square Enix 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 recent recommendations for DoorDash and Square Enix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	13	22	1	2.67
Square Enix	1	0	0	0	1.00

DoorDash presently has a consensus target price of $263.88, indicating a potential upside of 6.04%. Given DoorDash’s stronger consensus rating and higher probable upside, analysts clearly believe DoorDash is more favorable than Square Enix.

Summary

DoorDash beats Square Enix on 14 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 Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.