Best Buy vs Sysco Which Is More Profitable?

Best Buy and Sysco are two companies operating in vastly different industries – consumer electronics retail and foodservice distribution, respectively. Both companies are well-established players in their respective fields, but their stocks have shown differing performance over the years. While Best Buy has seen steady growth thanks to its strong brand recognition and competitive pricing, Sysco has faced challenges due to fluctuations in food prices and changing consumer preferences. Investors looking to invest in these stocks should carefully consider the unique dynamics of each industry before making a decision.

Best Buy or Sysco?

When comparing Best Buy and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.53%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 Sysco's P/E ratio at 20.26. 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 Sysco's P/B ratio is 17.83.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.22% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.05 for Best Buy and $79.24 for Sysco. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. Sysco's prices fluctuated between $69.03 and $82.89, with a yearly change of 20.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.