Better Buy: Lyft vs. Uber Technologies
Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) are often mentioned in the same breath, as they both provide ride-hailing services and vehicle rentals, but the two companies are fundamentally different. Uber is larger and more globally diversified, and it operates a dedicated food delivery platform. Lyft is smaller, only operates in the U.S. and Canada, and provides food deliveries through a partnership with Grubhub instead of its own platform.
I compared these two stocks just over a year ago, and said Lyft was a better buy because it had achieved profitability on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis before Uber. But since then, Lyft's stock has plunged nearly 70% as Uber's stock stayed flat. Let's see why Lyft underperformed Uber by such a wide margin -- and if it can narrow that gap over the next few quarters.
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Source Fool.com
