Canadian Tire vs Fastly

Canadian Tire Corporation Limited is a well-established Canadian retail company, known for its wide range of products including automotive, hardware, leisure, and home goods. On the other hand, Fastly Inc. is a rapidly growing tech company that provides content delivery network services to businesses. Both companies have had their ups and downs in the stock market, with Canadian Tire being a stable, dividend-paying stock and Fastly experiencing higher volatility due to its growth potential. Investors must weigh the pros and cons of investing in these two very different companies.

Canadian Tire or Fastly?

When comparing Canadian Tire and Fastly, 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 Fastly.

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 4.44%, while Fastly 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 93.42%. On the other hand, Fastly 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 23.08 and Fastly's P/E ratio at -6.02. 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 1.56 while Fastly's P/B ratio is 1.01.

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 0.37%, while Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 7.00% and Fastly's ROE at -16.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.84 for Canadian Tire and $7.18 for Fastly. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.