Aritzia vs Abercrombie & Fitch Which Should You Buy?

Aritzia and Abercrombie & Fitch are both popular retail companies with stocks traded on the market. Aritzia, known for its fashion-forward clothing and loyal customer base, has seen steady growth in its stock price over the years. On the other hand, Abercrombie & Fitch, once a dominant player in the retail industry, has struggled to regain its foothold in the market amidst changing consumer preferences. Investors are closely monitoring these two stocks to determine their potential for future growth and profitability.

Aritzia or Abercrombie & Fitch?

When comparing Aritzia and Abercrombie & Fitch, 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 Aritzia and Abercrombie & Fitch.

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. Aritzia has a dividend yield of -%, while Abercrombie & Fitch has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aritzia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Abercrombie & Fitch 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 Aritzia P/E ratio at 54.36 and Abercrombie & Fitch's P/E ratio at 14.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aritzia P/B ratio is 6.31 while Abercrombie & Fitch's P/B ratio is 6.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aritzia has seen a 5-year revenue growth of 2.12%, while Abercrombie & Fitch's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aritzia's ROE at 12.32% and Abercrombie & Fitch's ROE at 47.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.85 for Aritzia and $148.36 for Abercrombie & Fitch. Over the past year, Aritzia's prices ranged from $26.04 to $38.16, with a yearly change of 46.54%. Abercrombie & Fitch's prices fluctuated between $76.82 and $196.99, with a yearly change of 156.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.