ASOS vs Urban Outfitters Which Offers More Value?

ASOS and Urban Outfitters are two popular fashion retailers that have gained significant attention from investors due to their strong presence in the online retail sector. ASOS, based in the UK, is known for its wide range of trendy and affordable clothing options, appealing to a younger demographic. Urban Outfitters, with stores across the United States, offers a mix of bohemian and hipster-inspired apparel. Both companies have experienced growth in their stock prices, but ASOS has shown more volatility in recent years due to its international exposure. Investors should carefully consider the differences in each company's business model and target market when deciding where to invest.

ASOS or Urban Outfitters?

When comparing ASOS and Urban Outfitters, 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 Urban Outfitters.

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 Urban Outfitters 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, Urban Outfitters 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 Urban Outfitters's P/E ratio at 11.66. 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 Urban Outfitters's P/B ratio is 1.61.

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 Urban Outfitters's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Urban Outfitters's ROE at 14.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.58 for ASOS and $38.72 for Urban Outfitters. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Urban Outfitters's prices fluctuated between $31.37 and $48.90, with a yearly change of 55.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.