Canadian Tire vs Atlassian Which Outperforms?

Canadian Tire Corporation Limited is a well-established Canadian retail company with a diverse range of products and services, including automotive, living, fixing, playing, and apparel. On the other hand, Atlassian Corporation Plc is an Australian software company that specializes in providing collaboration tools for software development teams. Both companies are publicly traded on the stock market, with Canadian Tire being a more traditional retail business and Atlassian being a technology-focused software company. Investors looking to diversify their portfolio may consider comparing the two stocks for potential investment opportunities.

Canadian Tire or Atlassian?

When comparing Canadian Tire and Atlassian, 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 Canadian Tire and Atlassian.

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. Canadian Tire has a dividend yield of 4.19%, while Atlassian has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Tire reports a 5-year dividend growth of 11.12% year and a payout ratio of 55.13%. On the other hand, Atlassian 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 Canadian Tire P/E ratio at 13.04 and Atlassian's P/E ratio at -159.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Tire P/B ratio is 1.48 while Atlassian's P/B ratio is 60.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Tire has seen a 5-year revenue growth of 0.36%, while Atlassian's is 2.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 11.54% and Atlassian's ROE at -38.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $107.78 for Canadian Tire and $238.38 for Atlassian. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Atlassian's prices fluctuated between $135.29 and $258.69, with a yearly change of 91.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.