ASOS vs Five Below Which Should You Buy?

ASOS and Five Below are both popular retail stocks with differing target markets and business models. ASOS is a UK-based online fashion retailer known for its extensive range of trendy clothing and accessories. On the other hand, Five Below is a US-based discount retailer offering a variety of affordable products for teens and pre-teens. Investors looking to capitalize on the fast-growing e-commerce sector may favor ASOS, while those seeking value-focused retail opportunities may prefer Five Below.

ASOS or Five Below?

When comparing ASOS and Five Below, 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 Five Below.

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 Five Below 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, Five Below 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 -1.73 and Five Below's P/E ratio at 17.23. 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 0.83 while Five Below's P/B ratio is 3.01.

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 Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Five Below's ROE at 18.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.58 for ASOS and $83.53 for Five Below. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.