Lyft (NASDAQ:LYFT – Get Rating) and Alight (NYSE:ALIT – Get Rating) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Profitability
This table compares Lyft and Alight's net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
| Lyft | -32.26% | -54.39% | -12.18% |
| Alight | 2.46% | 3.65% | 1.67% |
Analyst Recommendations
This is a breakdown of current recommendations for Lyft and Alight, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Lyft | 1 | 15 | 14 | 0 | 2.43 |
| Alight | 0 | 0 | 5 | 0 | 3.00 |
Lyft presently has a consensus price target of $23.40, suggesting a potential upside of 44.65%. Alight has a consensus price target of $12.86, suggesting a potential upside of 35.77%. Given Lyft's higher probable upside, analysts plainly believe Lyft is more favorable than Alight.
Institutional and Insider Ownership
79.4% of Lyft shares are owned by institutional investors. Comparatively, 95.7% of Alight shares are owned by institutional investors. 3.3% of Lyft shares are owned by company insiders. Comparatively, 4.0% of Alight shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Lyft has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Alight has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Earnings and Valuation
This table compares Lyft and Alight's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Lyft | $3.21 billion | 1.82 | -$1.06 billion | ($3.58) | -4.52 |
| Alight | $2.92 billion | 1.81 | -$60.00 million | $0.16 | 59.19 |
Alight has lower revenue, but higher earnings than Lyft. Lyft is trading at a lower price-to-earnings ratio than Alight, indicating that it is currently the more affordable of the two stocks.
Summary
Alight beats Lyft on 9 of the 14 factors compared between the two stocks.
About Lyft
(Get Rating)
Lyft, Inc. engages in the provision and management of an online social rideshare community platform. It provides access to a network of shared bikes and scooters for shorter rides and first-mile and last-mile legs of multimodal trips, information about nearby public transit routes, and Lyft Rentals to offer riders a view of transportation options when planning any trip. The company was founded by Marcus Cohn, John Zimmer, Rajat Suri, Matt van Horn, and Logan Green in 2007 and is headquartered in San Francisco, CA.
About Alight
(Get Rating)
Alight, Inc. operates as a cloud-based provider of integrated digital human capital and business solutions worldwide. It operates through three segments: Employer Solutions, Professional Services, and Hosted Business. The company's solutions enable employees to enrich their health, wealth, and wellbeing, which helps organizations achieve a high-performance culture. It offers employer solutions comprising integrated benefits administration, healthcare navigation, financial health, employee wellbeing, and payroll; and professional services, including cloud deployment and consulting offerings that provides human capital and financial platforms, as well as cloud advisory and deployment, and optimization services for cloud platforms, such as Workday, SAP SuccessFactors, Oracle, and Cornerstone OnDemand. Alight, Inc. was founded in 2017 and is headquartered in Lincolnshire, Illinois.
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