AM vs Best Buy Which Outperforms?

AM and Best Buy are two major players in the retail industry, each with its own unique strengths and weaknesses. AM, with its focus on online sales and digital innovation, has experienced significant growth in recent years, while Best Buy has a strong physical store presence and a loyal customer base. Both companies have their own set of challenges, including increasing competition and changing consumer preferences. Investors looking to choose between AM and Best Buy stocks must carefully consider each company's financial performance, market position, and long-term growth potential.

AM or Best Buy?

When comparing AM and Best Buy, 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 AM and Best Buy.

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. AM has a dividend yield of -%, while Best Buy has a dividend yield of 3.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AM reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%.

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 AM P/E ratio at -1.90 and Best Buy's P/E ratio at 14.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AM P/B ratio is 0.22 while Best Buy's P/B ratio is 5.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AM has seen a 5-year revenue growth of 0.00%, while Best Buy's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AM's ROE at -11.30% and Best Buy's ROE at 39.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.05 for AM and $86.84 for Best Buy. Over the past year, AM's prices ranged from HK$0.04 to HK$0.10, with a yearly change of 134.09%. Best Buy's prices fluctuated between $69.29 and $103.71, with a yearly change of 49.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.