Alta vs Vail Resorts Which Is More Profitable?

Alta and Vail Resorts are two renowned companies within the ski industry, each with their own distinct qualities and strengths. Alta, located in Utah, is known for its renowned ski terrain and traditional, no-frills approach to skiing. On the other hand, Vail Resorts, based in Colorado, is a larger conglomerate with multiple ski resorts under its umbrella, offering a wide range of amenities and activities for visitors. Both companies have seen fluctuations in their stock prices in recent years, making them interesting options for investors looking to capitalize on the popularity of winter sports.

Alta or Vail Resorts?

When comparing Alta and Vail Resorts, 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 Alta and Vail Resorts.

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. Alta has a dividend yield of -%, while Vail Resorts has a dividend yield of 6.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Vail Resorts reports a 5-year dividend growth of 6.98% year and a payout ratio of 140.48%.

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 Alta P/E ratio at 2.28 and Vail Resorts's P/E ratio at 29.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alta P/B ratio is 0.16 while Vail Resorts's P/B ratio is 9.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alta has seen a 5-year revenue growth of 10.40%, while Vail Resorts's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alta's ROE at 7.34% and Vail Resorts's ROE at 28.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.14 for Alta and $178.35 for Vail Resorts. Over the past year, Alta's prices ranged from zł1.43 to zł3.59, with a yearly change of 151.05%. Vail Resorts's prices fluctuated between $165.00 and $236.92, with a yearly change of 43.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.