ASOS vs boohoo

ASOS and Boohoo are two prominent online fashion retailers with significant differences in their business strategies and performance in the stock market. ASOS, a British company, focuses on offering a wide range of trendy and affordable clothing to a global audience. In contrast, Boohoo, also based in the UK, targets a younger demographic with fast fashion at competitive prices. Both companies have experienced fluctuations in their stock prices due to various factors such as competition, market trends, and consumer behavior. Let's dive deeper into the comparison between ASOS and Boohoo stocks to better understand their performance and potential for investors.

ASOS or boohoo?

When comparing ASOS and boohoo, 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 boohoo.

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 boohoo 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, boohoo 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 -1.99 and boohoo's P/E ratio at -2.64. 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 0.80 while boohoo's P/B ratio is 1.30.

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 boohoo's is 0.64%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -33.38% and boohoo's ROE at -41.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.40 for ASOS and £30.02 for boohoo. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. boohoo's prices fluctuated between £26.48 and £42.63, with a yearly change of 61.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.