ASOS vs Cosco Which Performs Better?

ASOS and Costco are two well-known companies in the retail industry with differing business models. ASOS is an online fashion retailer that focuses on trends and fast fashion, while Costco is a membership-based warehouse club known for its bulk discounts. Both companies have experienced growth in recent years, but ASOS has faced challenges in maintaining profitability. Investors looking to invest in retail stocks may consider the distinct opportunities and risks associated with ASOS and Costco.

ASOS or Cosco?

When comparing ASOS and Cosco, 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 Cosco.

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 Cosco 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, Cosco 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 -1.84 and Cosco's P/E ratio at 40.02. 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 0.88 while Cosco's P/B ratio is 2.90.

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 Cosco's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Cosco's ROE at 10.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.90 for ASOS and ₹360.00 for Cosco. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Cosco's prices fluctuated between ₹50.75 and ₹378.40, with a yearly change of 645.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.