Best Buy vs Grupo Elektra Which Is a Better Investment?

Best Buy and Grupo Elektra are two prominent companies in the retail industry with a significant presence in the global market. Best Buy is an American multinational consumer electronics retailer known for its wide range of products and exceptional customer service. On the other hand, Grupo Elektra is a Mexican company specializing in retailing electronics and appliances. Both companies have generated substantial returns for their shareholders, but their stock performances may vary due to differences in market positioning and economic conditions.

Best Buy or Grupo Elektra?

When comparing Best Buy and Grupo Elektra, 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 Grupo Elektra.

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 Grupo Elektra has a dividend yield of 1.11%. 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, Grupo Elektra reports a 5-year dividend growth of 8.24% year and a payout ratio of 89.95%.

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 Grupo Elektra's P/E ratio at 81.11. 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 Grupo Elektra's P/B ratio is 1.11.

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 Grupo Elektra's is 0.83%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.22% and Grupo Elektra's ROE at 1.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.05 for Best Buy and Mex$411.00 for Grupo Elektra. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. Grupo Elektra's prices fluctuated between Mex$186.36 and Mex$1207.47, with a yearly change of 547.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.