Canadian Tire vs GameStop Which Is More Favorable?

Canadian Tire and GameStop are two very different companies operating in distinct industries. Canadian Tire is a well-established retail giant in Canada, focusing on automotive, home, and leisure products, while GameStop is a retail chain primarily selling video games and gaming accessories. Both companies have seen fluctuations in their stock prices, with Canadian Tire benefiting from its diversified product offerings and GameStop experiencing volatility due to shifts in the gaming industry. Investors may want to carefully consider the strengths and weaknesses of each company before making investment decisions.

Canadian Tire or GameStop?

When comparing Canadian Tire and GameStop, 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 GameStop.

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 4.76%, while GameStop 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, GameStop 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 13.15 and GameStop's P/E ratio at 194.33. 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 1.49 while GameStop's P/B ratio is 2.55.

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 GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 11.54% and GameStop's ROE at 2.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $107.40 for Canadian Tire and $27.92 for GameStop. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.