Canadian Tire vs Sysco Which Is a Better Investment?
Canadian Tire and Sysco are two prominent companies in different sectors of the market. Canadian Tire is a well-known retail company that operates in various segments, including automotive, sporting goods, and apparel. On the other hand, Sysco is a global leader in food distribution services, serving customers in the hospitality industry. Both companies have shown strong performance in recent years, but investors may have different perspectives on which stock offers better potential for growth and profitability. In this analysis, we will compare the financial performance and market outlook of Canadian Tire and Sysco stocks to help investors make informed decisions.
Canadian Tire or Sysco?
When comparing Canadian Tire and Sysco, 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 Sysco.
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 5.0%, while Sysco has a dividend yield of 2.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Tire reports a 5-year dividend growth of 10.27% year and a payout ratio of 40.53%. On the other hand, Sysco reports a 5-year dividend growth of 5.30% year and a payout ratio of 52.03%.
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 9.07 and Sysco's P/E ratio at 18.90. 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 1.31 while Sysco's P/B ratio is 18.14.
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 0.25%, while Sysco's is 0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 15.38% and Sysco's ROE at 94.47%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $100.48 for Canadian Tire and $74.14 for Sysco. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Sysco's prices fluctuated between $69.03 and $82.33, with a yearly change of 19.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
