Uber vs Lyft: a Stock Duel
Head-to-head: which stock has stronger fundamentals
Ladies and gentlemen, the moment has arrived for our 5th stock duel: Uber vs Lyft. The leader vs the challenger in the mobility war. Let’s break down the numbers, compare the key metrics, and see which stock comes out on top. Ready to pick your winner? Let’s dive in!
If you enjoy stock duels, here are the 3 most recent matchups!
Share your thoughts on both companies in the comments below!
Metrics and markets
Uber (ticker: UBER) is approximately 10x the size of Lyft (ticker: LYFT) in terms of revenue. Both companies are growing at a solid pace, but Uber clearly dominates in market share. In an effort to gain ground, Lyft is strategically focusing on mid-sized cities where it hopes to carve out a stronger foothold.
This disparity in market share is also reflected in profitability. Uber has a net profit margin of 11.7%, nearly 8x higher than Lyft’s modest 1.4%.
However, when it comes to stock-based compensation (SBC), Lyft appears more restrained… but that is not necessarily good news for investors. Roughly 50% of Lyft’s free cash flow is consumed by SBC, compared to about 25% for Uber. This heavy pressure limits the shareholder value creation at Lyft, despite its headline cost discipline. And it increases the dilution.
So, why even consider investing in Lyft? The answer lies in its potential. With such thin margins today, even a modest improvement could dramatically boost EPS. In that sense, Lyft offers high-upside potential but it comes with higher risk. If you are looking for quality, scale, and a clear market leaders, Uber remains the more compelling long-term pick.
Technical analysis
Used source: Marketscreener.com. Affiliate link just here
Uber
The trend is highly positive in 2025 but there is a lot of volatility. Here are my 3 buy zones:
Buying zone 1: $82
Buying zone 2: $59
Buying zone 3: $49
Lyft
The long-term trend is negative. The buying zones are:
Buying zone 1: $15
Buying zone 2: $9.8
Buying zone 3: $8.1
For Lyft, a momentum-based strategy (buying on a breakout + strong fundamental improvements) might be the more cautious and disciplined approach.
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Leaning toward Uber here. It’s already profitable with solid margins (11.7% vs Lyft’s 1.4%) and much stronger returns on capital. Lyft’s big EPS growth looks flashy, but Uber feels more stable and proven. Plus, Uber’s global scale and efficiency make it the better long-term bet in my view.
$LYFT quarterly chart is one to keep an eye on