 Once again ladies and gentlemen, boys and girls and children of all ages, you are now tuned in to the Prince of Invest and coming to you guys and girls live all the way from the beautiful state of Denver, Colorado, Vera, HALALULU, Y. Don't forget to hit that like subscribe comment and share button and as always check out that description box and hit that bell icon to get updates as they come. But as always, I don't have a lot of time and I definitely know you guys and girls don't have a lot of time so we're going to jump straight into it. As you can see in the title and description box, we're going to be talking about Uberstock versus Livestock. This is a topic I chose today because on my YouTube channel I had a little poll put up about what stock would you buy and 67% of the people said they would buy Uberstock. So I decided to do a little research and I decided to do an episode on it. So I'm going to give nine reasons, we're going to go through nine things that I evaluated via the 2018 balance sheets of Liv and the 2018 balance sheets of Uber. So I looked at the balance sheets that went back about, with Uber it went back about five years, with Liv it went back about three years, but both of the companies just IPO this year. So some of the things we're going to look at, we're going to look at the PE ratio, we're going to look at the dividend, we're going to look at the network of both companies, we're going to look at the revenue, how much money is spent on research and development, brand strength, stock price, stock performance, and operating expenses. So because you know what, let's jump straight into it. Let's first jump into the PE ratio. Now, when we look at the PE ratio, the PE ratio is the price to earnings ratio. The price of the stock versus the earnings. Now, neither one of the companies, Uber is not profitable. Also, Liv is not profitable. As big of these companies seem, as much as they're doing, neither company are either profitable. Now, we're either coming to being profitable, that means both of their PE ratios are zero. So neither company are profitable. So both companies, both companies, PE ratio is zero. Now we're going to look at the market capitalization of each stock. Market capitalization for Uber is 56 billion. The market capitalization for Liv is 12 billion. So I think both companies, looking at the evaluations of the companies, compared to their earnings, a non-profitable company being worth 56 billion. And another non-profitable company being worth 12 billion. So I do think both companies are grossly overvalued. But I think that a lot of their new industry, they're brand new or whatnot. But both of the companies are grossly overvalued, being valued at 56 billion and $12 billion. Are you not even profitable? So that's one thing that I already look at. So that's market capitalization, price of earnings. Second thing, dividend. And of course, neither company has a dividend, right? Neither company has a dividend for either one of the stocks they provide. So that kind of put them back in a tie with each other. The next one. Now, let's go back to market capitalization. Market capitalization, 56 billion for Uber and 12 billion for Liv. That means that Uber, in my opinion, is grossly overvalued compared to a Liv. Next thing I'm going to look at, I broke down the network of each company, right? Breaking down in the network of each company, I took their total assets. Mine is their total liabilities in 2018, 2017, 2016, and so on. And of course, Uber has a higher network. It's about double or triple the network of Liv. So when I looked at all the assets and I subtracted all of their liabilities, Uber network doubled a triple, almost tripled, Liv's network. So network-wise, Uber is worth more when we look at the network. So it's just like I look at a stock like an individual person or an individual house, you take out the assets and liabilities. And if I look at one house compared to another house, I say, okay, well, this company here, it doesn't mean everything. It doesn't mean a future earning potential. It doesn't mean anything like that, but it means that right now, I'll put a higher value looking at the assets and liabilities. Now, another thing I looked at, when we looked at the network, Uber wins the block of network. I'm almost doubling and tripling. And then also Uber network doubled from 2017 to 2019 versus Liv is just went up by smidgen, not that much, right? The year-to-year network. So I like to look at that because that means that when a company hits a downturn, when the economy hits a downturn, how can that company survive and be able to make it to the next day? Now, another interesting one that I haven't done in a while is I looked at the revenue, right? Total revenues. Which company is bringing in the most money? I'm looking down at my nose here for the people that's catching this live or catching a playback, looking down at my nose. These are the notes that I took throughout my valuation process. When I look at the revenue, when I look at the revenue of Uber versus Liv in 2018, 2017, 2016, it's not even close. Uber is bringing in more revenue than Liv hands down, right? Also in 2018, they probably brought in, they're looking at it, they brought in about five times as much in total revenue than Liv. And they also beat them seven times as much in 2017. So we're looking at who's bringing in the most money, it's Uber. Who has to hide network, it's Uber, right? So that's the second part. Then number three, now this was a kind of hard one to do. We had to look at brand, who has the strongest and biggest brand, right? When I look at the strongest and biggest brand, I will say it's probably, I'm never, to be honest with you, I've never used Liv. I think I probably downloaded the app once. But I know friends that say, hey, they're driven for both. They like Liv a little bit better. But I think Uber has a stronger brand. Why do I think Uber has a stronger brand? First, Uber came out first in 2009. And Liv came out, was founded in 2012. Just because you've been around longer than me, you have a stronger brand. But it seems that Uber has turned into an adjective, right? People say, hey man, I'm gonna call you Uber. Or hey, you better look at Uber. Uber is kind of like the thing. It was the first one, it seems like to me it has the strongest brand from evaluating it online, from evaluating the nose when I compare to Liv. So when you look at their ride share industry, that's what they're calling it. The ride share industry, it seems like Uber has a strong brand position currently. So I have to give brand to Uber as well. Why is brand so important? Just look at McDonald's, right? McDonald's has a tremendously strong brand just due to the fast food industry, right? People always will say, hey, you're gonna end up working at McDonald's. They don't mean McDonald's literally, they're speaking of fast food. It's like the King, it came out first. It was the original, right? You see Burger King and Wendy's and all the other people try to copy his motto. But it seems that McDonald's has a stronghold. So when I look at the game itself, I would say Uber has a stronger brand than Liv, has the strongest brand in the ride share industry currently. Now, the next one is a very interesting thing that I wanted to compare was research and development, right? Companies that are constantly putting out money to research and development. Research and development means they're looking for better ways to advance the company in the future. So I like to look at companies who's putting a lot of money towards research and development because Nantana 10 is probably gonna pay them dividends in the future. Like we know, for prime example, I used to think Uber was cool. I thought we'd kill the cab industry. But I just came back from New York and the cab industry is doing fine and well. I think I caught an Uber somewhere and I caught a cab somewhere too. So the cab industry is still alive and kicking in downtown, very urban areas like New York. But not so much in other places or whatnot. So we look at an Uber. It is, when we look at Uber, what research and development does, and I brought this up because I've never heard of Uber Black. I didn't know there was an Uber Black. I figured that Uber Black was when I had a couple of celebrity friends that wanted to do something or whatnot. I had to, they told me, hey, I only ride Black. I'm like, what is Black? Now, I looked up Black, wow. So that was a very interesting topic that they had done of being able to get a luxury vehicle or a luxury transportation via Uber. Now we've heard of Uber going into frets and trains and all sorts of things, right? I've seen all type of information on Uber, but that comes back to research and development is how a company goes forward in the future. So a company goes further into the future due to their research and money they've put on research and development to see how would it go from, how would it go to the particular future by how much money they spend on trying to see what is the next best thing. And when I came down to that, I didn't mean to be dead, dead horse. When I came down to research and development, Uber won again. Uber is allocating more money to his research and development. Now, when I looked at there, so I give them the win to that because that's the way for me to protect, not protect, but to predict the future of where the company is going. New technologies is going to have, new things are going to be going on with the company. That's how I was going to be able to do research and development. Now, the next thing is stock price. Very easy one. Everybody already knows, right? Uber stock price is about 30 bucks early, 33 dollars. So right now, currently, I'm making this video early 30 dollars, but then you have Lyft, which is over 40 something dollars. So Lyft is priced more than Uber. How can Lyft be priced more than Uber when it has a lower network, when it has a lower earnings or whatnot? Now we know stock prices are, you know, like the great Warren Buffett said, prices, what you pay values, what you get, you know, or whatnot. But why is Lyft trading for more than Uber, right? Now, so I look at that when I look at that, I already expect that both of the companies are over-evaluated according to their earnings and their current revenue, but for Lyft to be about 40 something bucks and be higher than Uber. I got to give it to, I will say Uber is a better stock to buy. According to stock price, right? Now, the next one we're going to look at, we're going to look at stock performance. Right. As we know that both of these companies just recently IPO'd a couple of months ago, Lyft being the first one, Uber following not too far after that. Since IPOing, Lyft has dropped 40%. That's right, 40%. Also, Uber has dropped 20%, right? So for people who really follow me and know me and know that I'm not a big IPO fan in general at all in the first place. And this gave me, let me take a swig of water. This gave me a good reason why. When Lyft first came out, it was valued at $20 billion. It had no revenue to back it up. It had no hard financial effects to back wise evaluation was so high. And I even remember putting out a video, and I remember someone even asking Warren Buffett about it. And he was, I think Lyft was valued at $25 billion. And he said, well, I evaluate companies as a whole. I look at, if I was going to buy the whole thing. And he was saying that Lyft, you know, he's old, old school and whatnot. That's true. Business is one of those things that we change the way we do business, but business doesn't change. Like someone who earns a business degree or a doctorate in business 20 years ago or 30 years ago, they, the knowledge that they gained 30 years ago is still can be applied today versus other industries. Like if you got a cybersecurity degree 30 years ago, it pretty much be obsolete today because of so much change. Things are constantly changing the way we do IP, IP addresses, VPNs, the way that new hacks are coming in every single day is very hard to keep up with it. Versus if you take business that we did 50 or 60 years ago, it's the same as that concept, but now it's on the app. Insurance is the same thing that it was 20, 30, 50 years ago. Now, maybe we just do it in a different way. It's like that old school thing in business. Nothing new up under the sun. Right. Even when you look at the cryptocurrency world, we think it's something new, but when you talk to those guys who got a little grin in their hair, they'll tell you, hey, something like this did come before and it did happen before. It's just repackage. It's like being a dad and you see your kids come up, telling you jokes or trying to pull things that you already seen it done. They don't know that you already done that. Right. They look at you as old out of touch. Ah, dad, nobody plays video games some more. We got an iPad. Still the same video game. You just plan in a different direction or your, your video game may be a little bit more advanced, but it's the same thing. So he took that business approach. He said, if I had $25 billion and I can buy anything, I wouldn't be buying Lyft with $25 billion. I know way better companies that could be a part of, you know, if you had $25 billion a day, would you go out and buy a $60 billion a day? Would you go out and buy Uber out of all the other companies that are out there? Some of you may, you may not take a little risk, but that's the thing. Right. So both IPOs drop significantly. That's why I don't like IPOs. Once they IPO, this is when I started to become interested. Once they drop 40%, 20% or whatever the case may be. So when we look at PE ratio, there's a tie. Neither company has a PE ratio. When it comes to dividends, there's a tie. Neither company gives a dividend. When it comes to revenue, Uber wins. Total revenues, Uber, Uber wins. When it comes to brand strength, brand awareness. I got to give it to Uber, Uber wins. When it comes to research and development, Uber is putting more dollars, just because you're spending more money doesn't mean that you're more effective, but it shows me that you're a little aggressive on your company's future in designing new technology. When it comes down to stock price, Uber is the cheaper stock and it has to hire a network or whatnot. Well, the case may be when it comes down to network itself, we already know, Uber is winning on the network. When it comes down to stock performance, both companies since IPOing have done pretty bad, especially compared to the market, but they're a brand new thing. And we got to say, I will say Uber is the shiny deterred because they only drop 20% versus live 40%. When it comes down to market capitalization, Uber is at $56 billion and Lyth is at $12 billion. I will say Lyth wins that category because it's at a lower, it has a lower market capitalization, which means that both from being non-profitable, you know, that means that everybody that's buying these stocks are predicted into the future. They have high hopes for the future. Now I'm going to give you a little bit of principine that's not factored by numbers. My first opinion when it comes down to this, Uber has this personal vibe in me that reminds me of Facebook. When Facebook first IPO, I remember it like yesterday, I remember cleaning up somewhere, I was picking up trash and wearing something like that in San Diego. This other guy was picking up trash with me. He's like, Prince, what about that Facebook, man? Facebook is IPOing. It was a big deal. Mark Zuckerberg is going to New York to IPO Facebook, right? And at that time, excuse me, taking a little swig of water from you that's listening, at that time, Facebook was the first of its kind. Now we got so many, we got Pinterest, it went public. Facebook has gone public. I think it's, yeah, Snapchat has gone public. Twitter has gone public. But if I remember, Facebook and Twitter was kind of round about that same time. And when Facebook came out, I was like, why do they make money? I heard they're not even profitable. What are you gonna do? And it first came out and I mean, it got killed as an IPO. I mean, it went down, you know, drastically. Facebook went down to like 20 bucks at the time. Then I told myself, I was like, see, I don't know, see Facebook, man, I don't know, social media. You know, it's just a website. When you think about it, what does it do? How does it produce things or whatnot? And now look at Facebook today, 170, 180 bucks, right? It rebounded very well. It's like, once it cleared out, cleaned out, and when companies go public, they raise a lot of money from the public. They get billions and billions of dollars to be able to put money in different places to grow the company. And when Facebook did that, they grew crazy, right? They grew, you know, significantly big time. They grew, you know, they did very well for themselves, right? And now when I look at that, I tell people, when I look at that, now when I tell people, like man, look at how massive this company has grown, what do you have to look forward to when you evaluate the company, right? So, you know, so Uber got that vibe to me that it has that strong brand, first of its kind in the industry, which I know Lyft kind of came first, but the first of its kind in this industry, it has that strong brand. And it seems like, hey, just IPO, it has all the feelings of Uber, I mean, of Facebook. So when it comes down to it currently right now, I don't like either one of them, right? I think if you're just going out here to start investing, this is the wrong conversation to be having. But if you're someone who's looking for a little spice to your portfolio, I gotta go with Uber. I like Uber. I like the, you know, I just went down the list in their ride share space currently. I like Uber. I like the way Uber is doing. I like the aggressiveness and research and development like I spoke about. I also compared their operating expenses, right? And when I looked at their operating expenses, I also noticed that, you know, Uber is spending way more money to operate yourself, right? Where as Lyft is keeping his operating expenses pretty low. But when I look at overall, due to the strength of the companies, due to the network, due to the price of the stocks, due to everything else, and if I had to stay in that industry and I wanted to get one, I would choose Uber hands down. All right? Well, my name is Prince Dykes. We just went through and we just evaluated both companies. If you don't think I was fair, if you say, well, Prince, you know, you didn't bring up, you didn't compare insurances or whatever or whatever the case should be, let me know, drop a comment below. But I try to be as fair as possible, go to the most important things as possible. They don't have a 10K. Neither company have a 10K. They did have two 10 kilos. I mean, two, not two, not two, 10Qs. I think they had one, both of them had 10, both of them had a 10Q, but I wanted to evaluate annual reports. Neither one of them had a 10K, but they did have to turn in the annual numbers when they were going public. So, looking at what I have on balance sheets and income sheets, me, I have to go with a Uber. Y'all, let me know what you think. Until the next video, podcast, cartoon, or whatever else you see me do crazy around the globe, peace, be safe, I'm out. Thank you.