Birkenstock vs ASICS Which Is a Smarter Choice?

Birkenstock and ASICS are two popular footwear brands that cater to different markets. While Birkenstock is known for its comfortable and durable sandals, ASICS is renowned for its performance-oriented athletic shoes. Both companies have established a strong presence in the market, with loyal customer bases and innovative product lines. Investors looking to add footwear stocks to their portfolios may compare the financial performance and growth potential of Birkenstock and ASICS to make an informed decision.

Birkenstock or ASICS?

When comparing Birkenstock and ASICS, 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 Birkenstock and ASICS.

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. Birkenstock has a dividend yield of -%, while ASICS has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Birkenstock reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASICS 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 Birkenstock P/E ratio at 87.48 and ASICS's P/E ratio at 41.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Birkenstock P/B ratio is 3.67 while ASICS's P/B ratio is 8.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Birkenstock has seen a 5-year revenue growth of 1.10%, while ASICS's is -0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Birkenstock's ROE at 4.41% and ASICS's ROE at 23.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.05 for Birkenstock and $19.97 for ASICS. Over the past year, Birkenstock's prices ranged from $41.00 to $64.78, with a yearly change of 58.00%. ASICS's prices fluctuated between $7.26 and $22.00, with a yearly change of 202.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.