Uber vs. Lyft: What's the Better Buy?

There are many notable ‘duos’ in the market, a list that includes Uber Technologies UBER and Lyft LYFT. Both companies facilitate the same type of service, though UBER’s reach does extend to food delivery and others as well.Recently, both companies have delivered their respective Q1 results, seeing strong post-earnings reactions so far. But what was there to like in each release? Let’s take a closer look.Uber Enjoys Big GrowthUber posted mixed results relative to our consensus headline expectations, with the company crushing the Zacks Consensus EPS estimate by more than 60% but marginally falling short of our sales estimate, reporting sales of $11.5 billion that grew 14% YoY.The company’s top line continues to grow nicely, as shown below. It’s worth noting that the recent $11.5 billion print reflected its first sequential decline in years.Image Source: Zacks Investment ResearchNotably, Trips during the period grew an impressive 18% YoY, which was driven by Monthly Active Platform Consumers (MAPCs) growth of 14% year-over-year. Gross bookings also saw 14% growth from the year-ago period, with adjusted EBITDA also seeing an impressive 35% move higher.All in all, a pretty solid release for the company, with shares initially seeing a muted reaction before moving higher over recent days. Shares have been volatile overall over the past year but have still outperformed relative to the S&P 500, up more than 30%. Image Source: Zacks Investment ResearchLyft Breaks Q1 Rides RecordLyft shares saw a notably stronger reaction to its release post-earnings relative to UBER, providing some much-needed relief following back-and-forth price action. Now up a modest 0.6% over the last year, Lyft shares have finally found themselves in the green, though the underperformance relative to the S&P 500 remains large.Image Source: Zacks Investment ResearchLyft fell short of our headline expectations, with the company missing our consensus EPS estimate by 5% and reporting sales 1% below expectations. Sales grew 14% year-over-year, whereas EPS soared 26% from the year-ago period.The company’s top line has remained decently strong, loosely mirroring that of UBER, as shown below.Image Source: Zacks Investment ResearchConcerning the notable highlights, Gross Bookings for Lyft shot 13% higher to $4.2 billion, whereas adjusted EBITDA of $106.5 million crushed the $59.4 million print in the same period last year. Rides for the company grew 16% year-over-year to a record 218.4 million for Q1, with Active Riders also seeing 11% growth from the same period last year.  Which Stock is a Better Option?Following their releases, we’ve seen plenty of analyst revisions for both Uber UBER and Lyft LYFT. The earnings outlook for UBER remains more constructive, as shown below.Image Source: Zacks Investment ResearchOn the other side, the earnings outlook for LYFT reflects one of bearishness, with analysts dialing back their EPS expectations across several timeframes post-earnings.Image Source: Zacks Investment ResearchThe more robust EPS outlook of Uber is a stronger bet, though it’s worth remembering that Lyft shares have been stuck in limbo over the past year, with the recent results also likely to finally drive some near-term positivity concerning share performance. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks