Booking vs. DoorDash: Does Going Out or Staying In Make One Stock a Better Buy for 2027?
Booking Holdings Inc.(NASDAQ:BKNG) and DoorDash Inc.(NASDAQ:DASH) both dominate their respective corners of the service economy. As travel and local delivery evolve, you might wonder which stock offers better prospects for 2027.
Booking operates a massive global travel network, while DoorDash connects local merchants with consumers through delivery logistics. Investors compare them because both rely on the dynamics of digital marketplaces. Each company faces different growth trajectories and valuation levels, making the choice a matter of balancing profitability against expansion potential.
The case for Booking
Booking operates a vast online platform that connects travelers with over 4.7 million properties globally. In its latest annual report, filed in early 2026, the company explained how its brands like Booking.com, Kayak, and OpenTable provide reservations for flights, rental cars, and restaurant tables. It maintains non-exclusive agreements with providers and distributes its services through marketplaces run by Alphabet Inc(NASDAQ:GOOG) and Apple Inc(NASDAQ:AAPL).
In FY 2025, revenue reached about $26.9 billion, representing a 13.4% increase over the previous year. The company reported net income of approximately $5.4 billion, which was a decrease from the $5.9 billion earned in 2024. The net margin, or the percentage of revenue kept as profit, reached approximately 20.1%, showing the platform's ability to capture rising global demand for travel services.
Booking reported a negative debt-to-equity ratio of negative 3.5x as of its December 2025 balance sheet, which means that total liabilities exceed shareholder equity. Its current ratio is 1.3x, which measures the company's ability to cover its short-term debts with its short-term assets. It generated roughly $9.1 billion in free cash flow, which is cash from operations minus capital expenditures, providing substantial capital for reinvestment or share repurchases.
The case for DoorDash
DoorDash provides a local commerce platform connecting consumers with over 615,000 restaurants and grocery markets. The company is rapidly expanding among retail stocks through its acquisition of Instacart. It manages a network of over 35 million members across its DashPass and Wolt+ services, facilitating delivery and pickup across more than 40 countries.
In FY 2025, revenue reached about $13.7 billion, which is a 28% increase compared to the prior fiscal year. The company achieved net income of approximately $935.0 million, a substantial increase over the $123.0 million reported in 2024 as the business continued to scale its local delivery network. The net margin reached about 6.8%, indicating that a higher percentage of revenue is being converted into bottom-line profit.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x, indicating a conservative amount of debt relative to equity. Its current ratio is 1.4x, which measures its ability to meet immediate financial obligations with liquid assets. Note that stock-based compensation represented roughly 43.2% of operating cash flow, which inflates reported cash generation since it is a non-cash expense added back in the cash flow statement.
Risk profile comparison
Booking faces intense competition from major technology platforms that are integrating generative artificial intelligence into search results. If Alphabet or other rivals allow travelers to book directly through search interfaces, it could reduce traffic to Booking's platforms. The company also deals with strict regulations like the European Union's Digital Markets Act and Digital Services Act, which increase compliance costs and could limit operational flexibility in key regions.
DoorDash operates in a crowded market against well-funded rivals like Uber Technologies Corp.(NYSE:UBER), Delivery Hero(OTC:DLVHF), and Amazon.com Inc.(NASDAQ:AMZN). Legal challenges regarding the classification of its delivery drivers could significantly increase labor costs if they are eventually ruled to be employees rather than contractors. Furthermore, the company must successfully integrate its $17 billion acquisition of Instacart while managing the operational complexity of expanding into grocery and convenience categories.
Valuation comparison
Booking looks more attractive based on its Forward P/E , which measures price relative to future earnings estimates, while both have a similar P/S ratio based on sales over the past twelve months.
| Metric |
Booking |
DoorDash |
|---|---|---|
| Forward P/E |
16.1x |
65.0x |
| P/S ratio |
4.5x |
4.6x |
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Which stock would I buy for 2027?
Booking Holdings is successfully shifting from an agency model to a primarily merchant model. That means it used to make its money as an agent--connecting travelers to a hotel and collecting a commission while the hotel manages collecting payment from the traveler. In the merchant model, Booking "buys" capacity from hotels and other providers on its platform and collects payment directly from the traveler. This tends to lead to fatter margins.
The company is also in excellent financial shape. It has $16 billion in cash, which makes its balance sheet investment grade. Another plus for shareholders is that the company has a $20 billion share buyback program. The brand is increasingly a destination for travelers, which means it is paying less to companies like Google for search engine visibility. Today, two-thirds of Booking.com's visitors are "organic," meaning they are direct visitors rather than from paid ad traffic.
Revenue will grow about 9% this year to $29.3 billion. And net income takes a healthier 50% leap to about $8.1 billion.
Things look good for DoorDash, as well. Originally a prepared-food delivery service, DoorDash has been finding success by expanding into new business verticals, such as delivering electronics, apparel, and groceries. Groceries, in particular, are expected to grow twice as fast as meal delivery for the company in the coming years. International expansion, wth the acquisition of the U.K. based Deliveroo, is helping the company expand as well. Advances in efficiency and speed, and improvements that help customers build order carts in the app, are improving sales, too.
For the current fiscal year, 2026, revenue is expected to rise 30% to $17.8 billion, with net income improving about 20% to $1.13 billion.
The choice here isn't between a good vs. bad business. They are both executing well. DoorDash shares are priced as a high-growth stock, as shown by its high forward P/E ratio. Booking, however, is priced like a value stock--its forward P/E ratio is less than the roughly 18.5x ratio of S&P 500 stocks. It's also well less than its competitor Airbnb Inc(NASDAQ:ABNB), which sits at 31x today.
The choice here is Booking Holdings, whose shares are too nicely priced for a long-term investor to ignore.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Alphabet, Amazon, Apple, Booking Holdings, and DoorDash. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy .
Booking vs. DoorDash: Does Going Out or Staying In Make One Stock a Better Buy for 2027? was originally published by The Motley Fool
