#3 - GrubHub (NYSE:GRUB)
Another service that has surged during the pandemic is food delivery. Grubhub (NYSE:GRUB) was already trading publicly before the onset of the lockdown measures that have closed many restaurants. And the second wave of mitigation efforts that are ongoing in many of the United States is renewing interest in food delivery.
Food delivery was already popular among the millennial and Generation Z consumers that make up a large part of Grubhub’s target market. And it will continue to prosper. Events such as a global pandemic tend to make us more of what we already were.
Investors' question is whether Grubhub’s first mover advantage as a publicly-traded company makes it a better buy to DoorDash (NYSE:DASH), which just went public in December. This is a low-margin business where companies have no distinct moat, which makes me suspect the current valuation of DASH stock.
I’ll give the nod to Grubhub. The company’s stock is trading at a similar price-to-sales ratio during the summer when demand fell as many consumers could eat outdoors at their favorite restaurants.
About Just Eat Takeaway.com
Just Eat Takeaway.com N.V. operates an online food delivery marketplace. The company focuses on connecting consumers and restaurants through its platforms. It serves in the United Kingdom, Germany, Canada, the Netherlands, Australia, Austria, Belgium, Bulgaria, Denmark, France, Ireland, Israel, Italy, Luxembourg, New Zealand, Norway, Poland, Portugal, Romania, Spain, and Switzerland, as well as through partnerships in Colombia and Brazil.
Read More - Current Price
- $61.05
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
