ASOS vs Zalando

ASOS and Zalando are two major players in the online retail industry, with both companies offering a wide range of fashion and beauty products to consumers worldwide. ASOS, based in the UK, has seen strong growth in recent years, while Zalando, based in Germany, has established itself as a leading e-commerce platform in Europe. Investors are often torn between the two stocks, as both companies have their own strengths and weaknesses. This article will compare the performance and future potential of ASOS versus Zalando stocks.

ASOS or Zalando?

When comparing ASOS and Zalando, 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 Zalando.

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 Zalando 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, Zalando 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 -1.99 and Zalando's P/E ratio at 26.07. 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 Zalando's P/B ratio is 1.62.

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 Zalando's is 2.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -33.38% and Zalando's ROE at 6.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.40 for ASOS and $16.55 for Zalando. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Zalando's prices fluctuated between $8.68 and $17.10, with a yearly change of 97.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.