boohoo vs ASOS Which Offers More Value?

Boohoo and ASOS are two popular online fashion retailers that have gained significant traction in the retail industry in recent years. Boohoo, known for its trendy and affordable clothing, has seen a sharp rise in its stock price, while ASOS, a global fashion powerhouse, has also experienced steady growth. Both companies have a strong online presence and cater to a young and fashion-forward audience. Investors looking to capitalize on the retail industry may find both Boohoo and ASOS stocks appealing options to consider.

boohoo or ASOS?

When comparing boohoo and ASOS, 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 boohoo and ASOS.

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. boohoo has a dividend yield of -%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. boohoo reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASOS 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 boohoo P/E ratio at -2.60 and ASOS's P/E ratio at -1.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. boohoo P/B ratio is 1.28 while ASOS's P/B ratio is 0.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, boohoo has seen a 5-year revenue growth of 0.64%, while ASOS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with boohoo's ROE at -41.80% and ASOS's ROE at -33.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £29.80 for boohoo and $4.71 for ASOS. Over the past year, boohoo's prices ranged from £26.48 to £42.63, with a yearly change of 61.01%. ASOS's prices fluctuated between $4.11 and $5.89, with a yearly change of 43.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.