ASOS vs Abercrombie & Fitch Which Is More Reliable?

ASOS and Abercrombie & Fitch are two well-known retail companies in the fashion industry that have attracted the interest of investors looking to capitalize on the global trends in fashion. ASOS is an online retailer known for its wide range of trendy and affordable clothing options, while Abercrombie & Fitch is a traditional brick-and-mortar retailer focused on a more premium and exclusive brand image. Both companies have experienced fluctuations in their stock prices due to changing consumer preferences and market conditions. Investors should carefully consider the potential risks and rewards associated with investing in these stocks.

ASOS or Abercrombie & Fitch?

When comparing ASOS 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 ASOS 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. ASOS 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. ASOS 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 ASOS P/E ratio at -1.94 and Abercrombie & Fitch's P/E ratio at 13.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.92 while Abercrombie & Fitch's P/B ratio is 5.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Abercrombie & Fitch's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% 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 $5.00 for ASOS and $133.81 for Abercrombie & Fitch. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Abercrombie & Fitch's prices fluctuated between $82.60 and $196.99, with a yearly change of 138.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.