ARB vs YETI Which Is More Lucrative?

Sure! ARB Corporation Limited (ARB) and YETI Holdings Inc. (YETI) are both companies that specialize in outdoor and recreational products, with a focus on high-quality gear for outdoor enthusiasts. ARB is an Australian-based company known for its rugged and reliable 4x4 accessories, while YETI is a popular American brand famous for its premium coolers and drinkware. Both companies have experienced significant growth in recent years, making them attractive options for investors looking to capitalize on the outdoor lifestyle trend.

ARB or YETI?

When comparing ARB and YETI, 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 ARB and YETI.

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. ARB has a dividend yield of 1.67%, while YETI has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ARB reports a 5-year dividend growth of 10.88% year and a payout ratio of 43.55%. On the other hand, YETI 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 ARB P/E ratio at 32.98 and YETI's P/E ratio at 17.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ARB P/B ratio is 5.16 while YETI's P/B ratio is 4.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ARB has seen a 5-year revenue growth of 0.53%, while YETI's is 1.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ARB's ROE at 15.86% and YETI's ROE at 28.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$40.79 for ARB and $38.58 for YETI. Over the past year, ARB's prices ranged from A$30.25 to A$48.11, with a yearly change of 59.04%. YETI's prices fluctuated between $33.41 and $54.16, with a yearly change of 62.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.