Canadian Tire vs Expedia Which Is a Smarter Choice?

Canadian Tire Corporation (CTC) Limited is a well-established Canadian retail company that operates through various banners, offering a wide range of products and services. On the other hand, Expedia Group is a leading online travel company that provides a platform for booking flights, hotels, rental cars, and other travel-related services. Both companies have been staples in their respective industries, but their stocks have shown different trends and performances in recent years. Let's take a closer look at how Canadian Tire and Expedia stocks compare.

Canadian Tire or Expedia?

When comparing Canadian Tire and Expedia, 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 Expedia.

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 4.58%, while Expedia 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, Expedia 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 13.47 and Expedia's P/E ratio at 23.23. 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 1.53 while Expedia's P/B ratio is 18.75.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 11.54% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $111.51 for Canadian Tire and $187.35 for Expedia. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Expedia's prices fluctuated between $107.25 and $192.28, with a yearly change of 79.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.