> ## Documentation Index
> Fetch the complete documentation index at: https://docs.driven.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Compare Two Stocks

> How to compare two stocks in Driven side by side: growth, margins, valuation, and competitive position, so you can decide which name is the stronger investment.

This guide covers comparing two (or more) stocks head to head. Use it when you have narrowed a decision to a few names and need to decide which one is the better investment, a question that is much easier to answer with the companies side by side than one at a time.

The Skill behind this workflow is [Competitor Analysis](/skills/competitor-analysis).

## When to use this

* Choosing between two names in the same sector
* Deciding which competitor is winning
* Sanity-checking one company's numbers against a peer

## Step 1: Ask for a head-to-head comparison

```text theme={null}
Compare [TICKER A] and [TICKER B]. Cover relative growth, margins, valuation, competitive position, and which one looks like the stronger investment and why.
```

Example:

```text theme={null}
Compare NVDA and AMD. Who's winning on growth and margins, how do their valuations compare, and which has the better risk/reward right now?
```

## Step 2: Make the comparison concrete

A good comparison is specific about the gaps. If the answer is vague, push for the numbers:

```text theme={null}
Show the key metrics side by side in a table, then explain what the differences mean for the investment case.
```

## Step 3: Stress the weaker-looking name

It is easy to conclude the obvious winner is the winner. Test it:

```text theme={null}
Make the strongest case for [the name that looks weaker]. What would have to be true for it to be the better pick?
```

## Step 4: Decide and document

```text theme={null}
Based on this, which name fits a [your strategy] investor better, and what's the one metric to watch that would change the answer?
```

## Common mistakes

* **Comparing names that aren't really comparable.** Make sure the peer set makes sense; the Agent can help define it.
* **Letting valuation alone decide.** The cheaper stock is not automatically the better one. Weigh quality and trajectory too.
* **Ignoring the timeframe.** "Better investment" depends on horizon; state yours.

## Prompt variations

```text theme={null}
Compare [TICKER A], [TICKER B], and [TICKER C] and rank them for a long-term holder.
```

```text theme={null}
Compare [TICKER A] and [TICKER B] purely on capital efficiency and balance-sheet strength.
```

## Related

* [Competitor Analysis Skill](/skills/competitor-analysis) — the workflow behind this guide
* [Valuation Matrix](/skills/valuation-matrix) — value the winner properly
* [Research a stock](/guides/research/research-a-stock) — go deep on one name