AL vs Walmart Which Is a Better Investment?

Both AL and Walmart are retail giants in the United States that have a significant impact on the economy and stock market. AL, also known as American Eagle Outfitters, focuses on trendy clothing and accessories for young adults, while Walmart is a one-stop shop for a wide range of products. Both companies have shown strength in their respective markets, but they have different strategies and target demographics. Analyzing their stocks can provide valuable insights into consumer trends and market performance.

AL or Walmart?

When comparing AL and Walmart, 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 AL and Walmart.

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. AL has a dividend yield of -%, while Walmart has a dividend yield of 0.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

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 AL P/E ratio at -16.36 and Walmart's P/E ratio at 44.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -36.54 while Walmart's P/B ratio is 8.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.58 for AL and $84.77 for Walmart. Over the past year, AL's prices ranged from HK$0.48 to HK$1.07, with a yearly change of 122.92%. Walmart's prices fluctuated between $49.85 and $85.79, with a yearly change of 72.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.