Best Stock to Buy Right Now: Uber vs. DoorDash

Globe and Mail

16 hours ago

Key Points
Uber has a huge global brand and could benefit from the growth of autonomous driving.
DoorDash has leveraged its leadership in the U.S. delivery business to build a growing international footprint.
One factor could lead investors to favor one company over the other.
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In the delivery business, transportation giant Uber Technologies (NYSE: UBER) lags DoorDash (NASDAQ: DASH) in the U.S. However, globally Uber's mobility segment generates more revenue than DoorDash, so you can't just dismiss Uber.
Despite the importance of delivery to both companies, such comparisons offer little clarity on which might be the more suitable choice for prospective shareholders. Investors need to take a closer look at both companies to determine which might deliver higher returns.
The case for Uber
In recent years, Uber has emerged as a global transportation giant and is the worldwide leader in delivery as measured by revenue. Delivery is its fastest-growing segment, increasing revenue by 15% in the first quarter of 2025 and 20% in the second quarter.
Investors and consumers know Uber best for offering ridesharing services in over 15,000 cities across the globe. Although it competes with companies like Lyft and DiDi in various countries, a globally recognized brand appears to drive its growth.
The company also appears poised to play a significant role in autonomous driving. Even though companies like Tesla and Alphabet are developing platforms, Uber has the customer base and the platform that can connect riders to autonomous vehicles. So it likely makes more sense for manufacturers to turn to Uber rather than developing such platforms in-house.
This approach has contributed to Uber's improving financials. In the first half of 2025, revenue of $24 billion surged 16% higher compared to the same period in 2024. In comparison, costs and expenses rose by 8% in the same period. This enhanced Uber's profitability to the point that net income attributable to Uber for the first two quarters of the year was $3.1 billion. In the first half of 2024, Uber earned $361 million.
That growing profitability has positioned Uber to initiate a $20 billion share repurchase program. Moreover, even though Uber's P/E ratio is 16 thanks to a one-time benefit, the forward P/E ratio of 25 confirms this is an inexpensive stock relative to its growth.
Indeed, the lower valuation may reflect some uncertainty about the success of autonomous driving. Still, between this low valuation and prospects for growth in mobility, Uber looks like an increasingly attractive holding.
Why investors might consider DoorDash stock
DoorDash leads the delivery business in the U.S., transporting items from restaurants, grocery stores, and retailers. In the second quarter of 2025, the company reached 10 billion cumulative orders, with 761 million orders made on the platform in Q2. That was a 20% yearly increase.
DoorDash has also upped its game internationally and it now operates in 30 countries. Much of that growth came through acquisitions. The company purchased U.K.-based delivery company Deliveroo for 2.9 billion pounds ($3.9 billion) and bought SevenRooms, which specializes in software in the hospitality industry, for $1.2 billion.
On the surface, such expansions seem to bode well for the consumer discretionary stock. In the first half of 2025, DoorDash generated $6.3 billion in revenue, a 23% increase compared to the same period in 2024.
The company limited cost and expense growth to 11% over the same period. Consequently, it turned profitable, reporting a net income attributable to DoorDash shareholders of $478 million during the first two quarters of the year, well above the $180 million net loss in the first half of 2024.
Moreover, DoorDash announced its own share repurchase plans in February when it authorized the buyback of $5 billion worth of shares. Nonetheless, it has so far not bought any stock and indicated it may not act on the authorization.
DoorDash's valuation may be one reason why. Its recent turn to profitability likely explains its 150 P/E ratio. Still, its forward P/E is 55, indicating the stock is relatively expensive. However, with the aforementioned 23% yearly revenue growth for the year's first half, investors could still choose to bid the stock higher.
Uber or DoorDash?
Between the two companies, Uber is likely to drive higher returns in the coming years.
DoorDash's lead in the U.S. delivery business and slightly faster revenue growth are notable, and it could continue to grow its revenue and customer base rapidly as it continues its international expansion.
Still, Uber has a longer track record of profitability and a more considerable global footprint. The factor that appears to make Uber stand out is valuation, which is considerably lower than that of DoorDash. That lower P/E ratio also may make Uber stock attractive even without the potential benefit of autonomous driving, meaning it is more likely to deliver higher returns over time.
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