Critical Analysis: Swvl (NASDAQ:SWVL) & Lyft (NASDAQ:LYFT)

Swvl (NASDAQ:SWVL) and Lyft (NASDAQ:LYFT) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Swvl and Lyft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swvl	0	0	0	0	0.00
Lyft	0	27	10	1	2.32

Lyft has a consensus price target of $17.84, indicating a potential upside of 31.79%. Given Lyft’s stronger consensus rating and higher probable upside, analysts plainly believe Lyft is more favorable than Swvl.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Swvl	N/A	N/A	N/A
Lyft	-1.19%	-1.58%	-0.18%

Insider and Institutional Ownership

34.0% of Swvl shares are owned by institutional investors. Comparatively, 83.1% of Lyft shares are owned by institutional investors. 29.9% of Swvl shares are owned by insiders. Comparatively, 3.1% of Lyft shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swvl	$19.80 million	1.81	$3.06 million	N/A	N/A
Lyft	$4.40 billion	1.28	-$340.32 million	($0.16)	-84.63

Swvl has higher earnings, but lower revenue than Lyft.

Risk and Volatility

Swvl has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Lyft has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Summary

Lyft beats Swvl on 7 of the 13 factors compared between the two stocks.

About Swvl

Swvl Holdings Corp. provides mass transit ridesharing services. It offers B2C Swvl Retail, which provides riders with a network of minibuses and other vehicles running on fixed or semi-fixed routes within cities; Swvl Travel that allows riders to book rides on long-distance intercity routes on vehicle available through the Swvl platform or through third-party services; and Swvl Business, a transport as a service enterprise product for businesses, schools, municipal transit agencies, and other customers. Swvl Holdings Corp. was founded in 2017 and is headquartered in Dubai, the United Arab Emirates.

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.