AAP vs ASOS Which Is More Promising?

AAP and ASOS are two well-known companies in the retail sector, each with unique strengths and weaknesses that make them appealing to different types of investors. AAP, also known as Advance Auto Parts, is a leading automotive aftermarket retailer with a strong track record of growth and profitability. On the other hand, ASOS is a popular online fashion retailer with a focus on fast fashion and trendy clothing items. Both companies have their own set of risks and potential rewards, making them interesting options for investors looking to diversify their portfolios.

AAP or ASOS?

When comparing AAP and ASOS, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AAP and ASOS.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AAP has a dividend yield of -%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AAP reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AAP P/E ratio at -2.69 and ASOS's P/E ratio at -1.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AAP P/B ratio is -0.60 while ASOS's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AAP has seen a 5-year revenue growth of 0.24%, while ASOS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AAP's ROE at 23.86% and ASOS's ROE at -43.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for AAP and $5.00 for ASOS. Over the past year, AAP's prices ranged from $0.00 to $0.00, with a yearly change of 500.00%. ASOS's prices fluctuated between $4.11 and $5.89, with a yearly change of 43.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.