Lyft (NASDAQ:LYFT – Get Free Report) and Corpay (NYSE:CPAY – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Lyft has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Corpay has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Profitability
This table compares Lyft and Corpay’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lyft | -7.73% | -54.80% | -5.41% |
| Corpay | 26.13% | 37.56% | 7.75% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lyft | 1 | 17 | 5 | 0 | 2.17 |
| Corpay | 0 | 0 | 4 | 0 | 3.00 |
Lyft presently has a consensus target price of $14.52, indicating a potential downside of 16.11%. Corpay has a consensus target price of $360.25, indicating a potential upside of 21.60%. Given Corpay’s stronger consensus rating and higher possible upside, analysts plainly believe Corpay is more favorable than Lyft.
Valuation and Earnings
This table compares Lyft and Corpay’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lyft | $4.40 billion | 1.57 | -$340.32 million | ($0.89) | -19.45 |
| Corpay | $3.76 billion | 5.69 | $981.89 million | $13.20 | 22.44 |
Corpay has lower revenue, but higher earnings 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.
Institutional & Insider Ownership
83.1% of Lyft shares are owned by institutional investors. Comparatively, 98.8% of Corpay shares are owned by institutional investors. 3.2% of Lyft shares are owned by insiders. Comparatively, 6.5% of Corpay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Corpay beats Lyft on 11 of the 14 factors compared between the two stocks.
About Lyft
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.
About Corpay
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.
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