ASOS vs NEXT

ASOS and NEXT are two well-known fashion retailers with popular stocks in the market. ASOS is an online fashion retailer catering to a younger demographic, known for its trendy and affordable clothing offerings. NEXT, on the other hand, is a traditional brick-and-mortar retailer with a focus on quality and classic styles. Both companies have loyal customer bases and strong brand recognition, but their stock performance and financial outlooks may differ due to their different business models and target markets. In this comparison, we will delve into the key factors that investors should consider when choosing between ASOS and NEXT stocks.

ASOS or NEXT?

When comparing ASOS and NEXT, 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 NEXT.

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 NEXT has a dividend yield of 2.02%. 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, NEXT reports a 5-year dividend growth of 1.85% year and a payout ratio of 30.91%.

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 NEXT's P/E ratio at 15.37. 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 NEXT's P/B ratio is 9.09.

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 NEXT's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -33.38% and NEXT's ROE at 55.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.40 for ASOS and £10155.00 for NEXT. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. NEXT's prices fluctuated between £6746.00 and £11103.83, with a yearly change of 64.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.