Carnival vs FAR Which Is More Attractive?

Carnival Corporation and Farfetch Limited are two companies operating in vastly different industries - Carnival is a well-known cruise vacation company, while Farfetch is an online luxury fashion retail platform. Despite their differences, both stocks have seen fluctuations in their performance in recent years. Carnival has been impacted by the global pandemic, leading to a decrease in revenue and stock value. In contrast, Farfetch has experienced growth as the e-commerce sector booms. Investors may want to carefully weigh the risks and potential rewards of investing in these two diverse stocks.

Carnival or FAR?

When comparing Carnival and FAR, 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 Carnival and FAR.

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. Carnival has a dividend yield of -%, while FAR has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carnival reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, FAR 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 Carnival P/E ratio at 18.66 and FAR's P/E ratio at 0.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carnival P/B ratio is 3.40 while FAR's P/B ratio is 0.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carnival has seen a 5-year revenue growth of -0.36%, while FAR's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and FAR's ROE at 169.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €20.37 for Carnival and $0.25 for FAR. Over the past year, Carnival's prices ranged from €10.60 to €20.90, with a yearly change of 97.26%. FAR's prices fluctuated between $0.20 and $0.37, with a yearly change of 89.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.