![]() I don’t care what the future looks like for food-delivery services.Īs for Facedrive, it doesn’t appear to know what it wants to be when it grows up, and that means your investment is going to be severely diluted in the future as it continues to sell stock to finance its grand plan to provide services that bring about a healthier planet. If I were going to invest in a money-losing large-cap stock, DoorDash would definitely not be it. The short answer is that Facedrive is not cheaper than DoorDash, but they both lose a boatload of money. Based on a share price of $13 as I write this, it has a market cap of $1.19 billion and a P/S ratio of 1,500 based on trailing 12-month sales of 980,000 CAD ($764,000). So, yes, DoorDash isn’t cheap.Īs for Facedrive’s Q3 2020 financial statements at Sedar, the company had 91.4 million shares outstanding at the end of September. Ramer points out that both GrubHub (NYSE: GRUB) and Postmates have been acquired in recent deals that valued the businesses between 4-5 times sales. At the current market cap of $44.5 billion, it’s got a price-to-sales ratio of 8.7, slightly less expensive, but still not cheap. That was based on a market capitalization of $51 billion. InvestorPlace’s Larry Ramer recently pointed out that DoorDash was trading more than 10 times the analysts’ 2021 sales estimate. By comparison, Facedrive had 748 million CAD ($585 million) in its first nine months through the end of September. In the first nine months of 2020, DoorDash had $1.92 billion in sales, almost four times higher than a year earlier. While it’s been swamped acquiring other businesses, investors shouldn’t confuse Facedrive with DoorDash in terms of sales. In October, it acquired Food Hwy, Canada’s leading ethnic and student-focused food-delivery service, for 1.5 million CAD ($1.17 million) in cash and 7.6 million CAD ($5.93 million) in Facedrive stock. 27, Facedrive acquired certain Foodora Canada assets out of bankruptcy in July for 562,000 CAD ($438,360). Thanks to contributor Paul Fisher for the tip on Facedrive.Īs someone who loves to point out different options for InvestorPlace readers, I couldn’t resist taking a closer look at the Canadian company that’s been on an acquisition binge in 2020.Īccording to the company’s Q3 2020 Management Discussion and Analysis from Nov. ![]() I’ll be the first to admit that I had never heard about the Toronto-based ridesharing company until I saw an article in discussing why DoorDash was the hottest IPO of 2020. Is Facedrive Cheaper Than DoorDash Stock? This business has many moving parts, so you might want to wait a few quarters to see which of the five verticals seem to stick. As part of the deal, the Exelon affiliate made a $2 million strategic investment in Facedrive. Facedrive acquired the business from an affiliate of Exelon (NASDAQ: EXC), the Chicago-based utility. That said, I do find its Steer electric vehicle subscription business, which it acquired in September 2020 for $3.5 million of its shares, interesting. Needless to say, plunking any money down on Facedrive stock is a riskier proposition than buying inflated shares of DoorDash. That’s a lot of businesses for a company that doesn’t have much revenue. Who Is Facedrive?įacedrive (OTCMKTS: FDVRF) company has a total of five verticals: Facedrive Rideshare (ridesharing), Facedrive Marketplace (sustainable e-commerce platform), Facedrive Foods (food delivery), Facedrive Social (e-social platform), and Facedrive Health (contact tracing and health services). ![]() ![]() Down 28% from its first day high of $195.50, you might want to consider a Canadian alternative before buying DoorDash’s two-week dip. In the 13 days since, it’s lost ground on 10 occasions.
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