Best Buy vs AM Which Offers More Value?

Best Buy and AM stocks are two major players in the retail industry, each with its own strengths and weaknesses. Best Buy is a well-established consumer electronics retailer known for its wide selection of products and excellent customer service. On the other hand, AM stocks are a fast-growing online retailer that has disrupted the traditional retail model with its competitive prices and convenience. Both companies have loyal customer bases and strong financial performance, making them popular choices for investors looking to diversify their portfolios.

Best Buy or AM?

When comparing Best Buy and AM, 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 Best Buy and AM.

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. Best Buy has a dividend yield of 3.22%, while AM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%. On the other hand, AM 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 Best Buy P/E ratio at 14.82 and AM's P/E ratio at -1.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 6.11 while AM's P/B ratio is 0.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while AM's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.22% and AM's ROE at -11.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.05 for Best Buy and HK$0.05 for AM. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. AM's prices fluctuated between HK$0.04 and HK$0.10, with a yearly change of 134.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.