Canada Goose vs Aritzia Which Is More Promising?

Canada Goose and Aritzia are two popular Canadian fashion retailers that have gained international recognition for their high-quality products and strong branding. Canada Goose is known for its luxury outerwear and accessories, while Aritzia offers a selection of contemporary clothing and accessories for women. Both companies have experienced growth in recent years, but their stocks have shown different performance trends. This article will compare the two companies' stocks, examining their financial health, market performance, and future prospects.

Canada Goose or Aritzia?

When comparing Canada Goose and Aritzia, 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 Canada Goose and Aritzia.

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. Canada Goose has a dividend yield of -%, while Aritzia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canada Goose reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aritzia 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 Canada Goose P/E ratio at 21.55 and Aritzia's P/E ratio at 56.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canada Goose P/B ratio is 3.83 while Aritzia's P/B ratio is 6.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canada Goose has seen a 5-year revenue growth of 0.75%, while Aritzia's is 2.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canada Goose's ROE at 16.77% and Aritzia's ROE at 12.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.71 for Canada Goose and $35.60 for Aritzia. Over the past year, Canada Goose's prices ranged from $9.23 to $14.75, with a yearly change of 59.82%. Aritzia's prices fluctuated between $26.04 and $38.16, with a yearly change of 46.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.