Reviewing Lyft (NASDAQ:LYFT) and Corpay (NYSE:CPAY)

Corpay (NYSE:CPAYGet Free Report) and Lyft (NASDAQ:LYFTGet Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Corpay has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Lyft has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Corpay and Lyft, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corpay 0 0 4 0 3.00
Lyft 1 17 5 0 2.17

Corpay presently has a consensus target price of $360.25, suggesting a potential upside of 22.36%. Lyft has a consensus target price of $14.60, suggesting a potential downside of 9.57%. Given Corpay’s stronger consensus rating and higher possible upside, analysts plainly believe Corpay is more favorable than Lyft.

Insider & Institutional Ownership

98.8% of Corpay shares are held by institutional investors. Comparatively, 83.1% of Lyft shares are held by institutional investors. 6.5% of Corpay shares are held by insiders. Comparatively, 3.2% of Lyft shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Corpay and Lyft’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corpay $3.76 billion 5.66 $981.89 million $13.20 22.30
Lyft $4.40 billion 1.47 -$340.32 million ($0.89) -18.15

Corpay has higher earnings, but lower revenue than Lyft. Lyft is trading at a lower price-to-earnings ratio than Corpay, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Corpay and Lyft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corpay 26.13% 37.56% 7.75%
Lyft -7.73% -54.80% -5.41%

Summary

Corpay beats Lyft on 11 of the 14 factors compared between the two stocks.

About Corpay

(Get Free Report)

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

About Lyft

(Get Free Report)

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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