Key Points
DoorDash continues to scale its local commerce platform through its recent acquisition of Instacart.
Dick's Sporting Goods is significantly expanding its reach by integrating the massive Foot Locker retail footprint.
Which of these consumer-focused leaders is the better pick for your portfolio as 2027 approaches?
Should you bet on digital convenience or the resilience of physical retail? Comparing DoorDash (NASDAQ:DASH) and Dick's Sporting Goods (NYSE:DKS) reveals two very different paths toward capturing consumer spending.
DoorDash dominates the local delivery market by connecting merchants with consumers through its tech-heavy platform. Meanwhile, Dick's Sporting Goods provides a traditional yet powerful omnichannel shopping experience for athletes. We are comparing them because both companies recently completed massive acquisitions to fuel their long-term growth through 2027.
The case for DoorDash
DoorDash operates a local commerce platform that connects restaurants, grocers, and retailers with a growing user base. Its business model relies on a three-sided marketplace that brings together merchants, consumers, and independent contractors known as Dashers. By expanding into categories like grocery, the company has emerged as a significant name among communication stocks. Recently, the company announced a $17 billion acquisition of Instacart to solidify its dominance in delivery.
In FY 2025, revenue reached about $13.7 billion, representing a growth rate of roughly 27.9% over the previous year. This performance marked a substantial increase from the approximately $10.7 billion generated during FY 2024. The company also reported a net income of around $935 million for the period. This result is a major shift from previous years, showing that the platform is starting to generate consistent profits as it scales.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.3x. This metric measures total debt relative to shareholder equity, suggesting a conservative debt profile. The current ratio, which measures the ability to pay short-term obligations with short-term assets, was roughly 1.4x. Free cash flow, or cash from operations minus capital expenditures, was about $2.2 billion. Note that stock-based compensation (SBC for short) represented roughly 43.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back.
The case for Dick's Sporting Goods
Dick's Sporting Goods is a major omnichannel retailer operating banners such as Golf Galaxy, Public Lands, and House of Sport. It serves individual athletes and youth organizations while maintaining a significant supplier relationship with Nike Inc. (NYSE:NKE), which accounts for roughly 31% of merchandise purchases. The company recently completed a large-scale integration of the Foot Locker business to expand its international and North American footprint. This move positions the retailer to capture a wider share of the global athletic footwear and apparel market.
In FY 2025, revenue reached approximately $17.2 billion, which was a growth of about 28.1% compared to the previous year. While revenue climbed significantly, the net income for the period was around $849.2 million. This was a decrease from the roughly $1.2 billion in net income reported during the prior fiscal year. The decline in net income occurred even as the company successfully integrated its recent acquisitions and expanded its store count across various international and domestic markets.
Based on the January 2026 balance sheet, the debt-to-equity ratio was nearly 1.4x. This suggests that total debt is higher than the equity held by shareholders. The current ratio was approximately 1.5x, reflecting the company's ability to cover its short-term liabilities with short-term assets. Free cash flow, calculated as operating cash minus capital spending, was roughly $400.2 million for the year. This cash flow supports the company's efforts to maintain its extensive physical retail presence and digital sales platforms.
Risk profile comparison
DoorDash faces intense competition from local delivery services and large e-commerce platforms like Amazon.com Inc. (NASDAQ:AMZN). Regulatory challenges regarding how contractors are classified could significantly impact its business model and cost structure. The company also deals with risks from cybersecurity incidents and the operational complexities of global expansion. Furthermore, the company is subject to concentrated voting power held by its co-founders, which limits the influence of outside shareholders on corporate decisions.
Dick's Sporting Goods deals with macroeconomic risks that might limit consumer discretionary spending on athletic gear and footwear. The company is currently navigating the integration of the Foot Locker business while managing complex inventory levels across its global banners. It is also defending itself against multiple securities class action lawsuits related to inventory conditions and disclosures. Additionally, the Stack family maintains concentrated voting power through a dual-class stock structure, giving them significant control over the company's direction.
Valuation comparison
Dick's Sporting Goods is cheaper given its lower Forward P/E on future earnings estimates and lower P/S ratio measuring sales over the past twelve months.
| Metric | DoorDash | Dick's Sporting Goods |
|---|---|---|
| Forward P/E | 64.3x | 13.1x |
| P/S ratio | 4.6x | 0.6x |
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?
Things look good for DoorDash. 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. For that growth, however, DoorDash shares are priced as a high-growth stock, as shown by its high forward P/E ratio.
Dick's is winning in the hotly competitive sporting goods sector. The business had about 7% market share before the pandemic and ended its fiscal 2026 with 9% share, according to stock research firm Argus. That's very good growth considering the sporting goods market sees heavyweights Walmart Inc. (NASDAQ:WMT), Amazon.com Inc. (NASDAQ:AMZN), and others heavily into selling the same category.
The company believes footwear is the growth engine for the company as a whole, hence its enthusiasm for the Foot Locker acquisition. Foot Locker will help Dick's strengthen relationships with brands like Nike and, hopefully, lead to access to higher-profile product launches. Foot Locker also gives Dick's a footprint in cities, where it is difficult to open a big-box store. Dick's also has a youth sports-focused app, GameChanger, that generates revenue from its scheduling capabilities and serves as a way to bring new customers into stores.
Thanks to the Foot Locker buy and improved merchandising, Dick's should add $5 billion in sales this fiscal year, bringing total sales to more than $22 billion, and see net income exceed $1 billion.
DoorDash is a good company, but good companies don't always make great stocks. Put bluntly, DoorDash looks expensive, as seen in its ratios above. Dick's is firing on all cylinders and has a business mix that seems to hold up well against online commerce rivals. Priced like a value stock by its ratios, go with Dick's for a better shot at long-term profits.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, DoorDash, Nike, and Walmart. The Motley Fool has a disclosure policy.