Canadian Tire vs FedEx

Canadian Tire Corporation Limited and FedEx Corporation are two well-known companies in their respective industries. Canadian Tire is a Canadian retail company that sells automotive, sports, and leisure products, while FedEx is a global courier delivery services company. Both companies have seen fluctuations in their stock prices over the years, with Canadian Tire experiencing growth in the retail sector and FedEx benefiting from the increased demand for shipping services. Investors looking to diversify their portfolio may consider comparing the performance of these two stocks.

Canadian Tire or FedEx?

When comparing Canadian Tire and FedEx, 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 FedEx.

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 FedEx has a dividend yield of 1.99%. 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, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

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 FedEx's P/E ratio at 16.23. 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 1.56 while FedEx's P/B ratio is 2.42.

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 FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 7.00% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.84 for Canadian Tire and $265.66 for FedEx. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. FedEx's prices fluctuated between $224.69 and $313.84, with a yearly change of 39.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.