ASOS vs Best Buy Which Should You Buy?

ASOS and Best Buy are two major companies in the retail industry, but they target different markets. ASOS is a UK-based online fashion retailer that caters to a younger demographic, offering a wide range of trendy and affordable clothing options. Best Buy, on the other hand, is a US-based electronics retailer known for its brick-and-mortar stores and wide selection of tech products. Both companies have experienced growth in recent years, but their stocks have performed differently due to their distinct business models and target markets.

ASOS or Best Buy?

When comparing ASOS 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 ASOS 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. ASOS has a dividend yield of -%, while Best Buy has a dividend yield of 4.16%. 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, 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 ASOS P/E ratio at -1.80 and Best Buy's P/E ratio at 15.25. 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 0.86 while Best Buy's P/B ratio is 5.33.

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 Best Buy's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% 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 $4.78 for ASOS and $89.45 for Best Buy. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. 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.