Best Stock to Buy Right Now: Uber vs. Grab Holdings

As a company, Uber (NYSE: UBER) has become adept at achieving business success and leveraging its core competencies to foster new revenue sources. This approach has made it the No. 1 rideshare company. Although it lags DoorDash in the U.S. delivery market, Uber is No. 1 globally in this market as well.

However, investors tend to overlook its foreign-based competition. One of its more prominent peers internationally is Singapore-based Grab Holdings (NASDAQ: GRAB). Considering Uber's growth on Grab's home continent, it's likely worth exploring whether Uber or Grab holds more potential for higher investor returns.

How the enterprises compare

As previously noted, Uber is the global leader in both ridesharing and deliveries. According to Interbrand, Uber is one of the top 100 most recognizable brands, and as of the second quarter of 2025, it has leveraged its branding to draw 180 million monthly active users, up from 156 million one year ago.

Additionally, Uber's platform is making it a major player in the burgeoning autonomous driving market. Its platform links prospective customers to the rides offered by these companies, something that could help revenue growth explode as more passengers ride in self-driving cars.

Grab Holdings also offers rideshare and delivery services and has partnered with autonomous driving companies. Nonetheless, this is where the similarities end. For one, Grab operates primarily in the Southeast Asia market.

Grab has become a superapp in the countries it serves. On top of rideshare and delivery, it also offers digital financial services. This offers payments, loans, insurance, and wealth management services to customers.

GrabMaps is an AI-powered mapping service. This provides help in hyperlocal activities like route planning and ETA calculations. It also maps previously unmapped parts of Southeast Asia, such as alleyways, mall interiors, and dirt paths.

Admittedly, GrabMaps would be a less valuable tool in other parts of the world. Still, it provides Grab with a unique niche market that can give it a competitive advantage.

How the financials compare

Grab may also hold an assumed advantage, as its $26 billion market cap presumably has more room for growth than Uber, which has a market cap of $205 billion.

Indeed, in the first half of 2025, Grab's revenue of $1.6 billion grew by 21% yearly. In comparison, Uber's $24 billion in revenue during that period increased by a more modest 16%.

However, even though neither stock has been profitable for long, Uber offers higher net margins. Its $3.1 billion in net income in the first two quarters of 2025 gives it a net profit margin of 13%. In contrast, Grab's profit of $30 million for the same period gives it a net profit margin of 2%.

Admittedly, this metric is based on volatile data. Uber's net income climbed nearly ninefold over the last year, and Grab turned profitable after losing $184 million during the same period last year. This means Grab's net margin should improve, but for now, Uber is the more profitable company.

The stock performance is mixed. Grab dramatically outperformed Uber over the last year, but Uber has earned higher returns year to date and during most other time periods going back to Grab's 2021 IPO.

UBER data by YCharts.

UBER data by YCharts.

While the newly profitable status of each stock makes price-to-earnings (P/E) ratios not applicable, Uber sells at a lower valuation, at least from a price-to-sales (P/S) ratio perspective. Uber trades at 4.4 times sales, just over half of Grab's 8.7 P/S ratio. That should make Uber stock more attractive, at least for value-oriented investors.

Should investors choose Uber or Grab Holdings?

For most investors, Uber looks like the better choice.

Despite that call, the situation does not necessarily bode poorly for Grab. Its superapp is a compelling offering in its Southeast Asian markets. The fact that Grab is also profitable and is approximately one-eighth the size of Uber could potentially set the company up for higher returns over time, provided the investor is willing to deal with the higher valuation.

Nonetheless, most U.S.-based investors will have a higher level of familiarity with Uber, and it has outperformed Grab over most time periods. Considering its lower valuation and potential for growth in both its current businesses and autonomous driving, Uber is more likely to be a suitable choice for all but the most risk-intolerant investors.

Will Healy has positions in Uber Technologies. The Motley Fool has positions in and recommends DoorDash and Uber Technologies. The Motley Fool recommends Grab. The Motley Fool has a disclosure policy.