ASOS vs Canadian Tire

ASOS and Canadian Tire are two companies operating in different industries but both offering investment opportunities in the stock market. ASOS is a UK-based online fashion retailer known for its trendy offerings and global reach. Canadian Tire, on the other hand, is a leading retail company in Canada with operations in automotive, sports, and home products. Investors looking to diversify their portfolio may consider comparing the performance and growth potential of ASOS and Canadian Tire stocks.

ASOS or Canadian Tire?

When comparing ASOS and Canadian Tire, 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 Canadian Tire.

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 Canadian Tire has a dividend yield of 4.44%. 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, Canadian Tire reports a 5-year dividend growth of 11.12% year and a payout ratio of 93.42%.

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 Canadian Tire's P/E ratio at 23.08. 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 Canadian Tire's P/B ratio is 1.56.

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 Canadian Tire's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -33.38% and Canadian Tire's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.40 for ASOS and $114.84 for Canadian Tire. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Canadian Tire's prices fluctuated between $91.50 and $120.47, with a yearly change of 31.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.