Big Lots vs Dollar Tree Which Is Superior?

Big Lots and Dollar Tree are both retail companies that cater to budget-conscious consumers. Big Lots offers a wide variety of merchandise, including furniture, home decor, and electronics, while Dollar Tree focuses on providing everyday items at affordable prices. Both companies have seen growth in recent years, but Big Lots has faced challenges due to increased competition in the retail sector. Investors may consider factors such as pricing strategies, store locations, and overall market trends when evaluating the potential profitability of these stocks.

Big Lots or Dollar Tree?

When comparing Big Lots and Dollar Tree, 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 Big Lots and Dollar Tree.

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. Big Lots has a dividend yield of -%, while Dollar Tree has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Big Lots reports a 5-year dividend growth of -24.21% year and a payout ratio of -0.06%. On the other hand, Dollar Tree 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 Big Lots P/E ratio at -0.03 and Dollar Tree's P/E ratio at -13.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Big Lots P/B ratio is -0.10 while Dollar Tree's P/B ratio is 1.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Big Lots has seen a 5-year revenue growth of 0.26%, while Dollar Tree's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Big Lots's ROE at -358.00% and Dollar Tree's ROE at -13.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.42 for Big Lots and $61.84 for Dollar Tree. Over the past year, Big Lots's prices ranged from $0.40 to $8.41, with a yearly change of 2002.50%. Dollar Tree's prices fluctuated between $60.49 and $151.22, with a yearly change of 149.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.