Aurora vs Victoria's Secret Which Is More Promising?

Aurora Cannabis and Victoria's Secret are two well-known companies in very different industries. Aurora is a Canadian cannabis producer and distributor, while Victoria's Secret is a popular lingerie retailer. Both companies have faced challenges in recent years, leading to fluctuations in their stock prices. Investors may be curious to see how these two companies compare in terms of performance, growth potential, and market trends. This analysis will explore the strengths and weaknesses of Aurora and Victoria's Secret stocks.

Aurora or Victoria's Secret?

When comparing Aurora and Victoria's Secret, 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 Aurora and Victoria's Secret.

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. Aurora has a dividend yield of 6.12%, while Victoria's Secret has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 114.00%. On the other hand, Victoria's Secret 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 Aurora P/E ratio at 14.82 and Victoria's Secret's P/E ratio at 19.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurora P/B ratio is 2.13 while Victoria's Secret's P/B ratio is 5.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurora has seen a 5-year revenue growth of -0.20%, while Victoria's Secret's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.44% and Victoria's Secret's ROE at 35.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$67.00 for Aurora and $33.85 for Victoria's Secret. Over the past year, Aurora's prices ranged from NT$66.20 to NT$77.00, with a yearly change of 16.31%. Victoria's Secret's prices fluctuated between $15.12 and $36.10, with a yearly change of 138.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.