Clorox vs Dollar Tree Which Performs Better?

Clorox and Dollar Tree are two significant players in the consumer goods industry, each with its unique selling points and market presence. Clorox, known for its strong brand and household cleaning products, is a stable and reliable investment option for many investors. On the other hand, Dollar Tree, as a discount retail giant, offers a different investment opportunity with its potential for growth and expansion. Understanding the strengths and weaknesses of both companies can help investors make informed decisions about their stock portfolios.

Clorox or Dollar Tree?

When comparing Clorox and Dollar Tree, 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 Clorox and Dollar Tree.

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. Clorox has a dividend yield of 3.66%, while Dollar Tree has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Clorox reports a 5-year dividend growth of 5.05% year and a payout ratio of 167.23%. On the other hand, Dollar Tree 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 Clorox P/E ratio at 57.34 and Dollar Tree's P/E ratio at -13.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Clorox P/B ratio is 341.18 while Dollar Tree's P/B ratio is 1.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Clorox has seen a 5-year revenue growth of 0.26%, while Dollar Tree's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Clorox's ROE at 268.42% and Dollar Tree's ROE at -13.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $164.81 for Clorox and $61.84 for Dollar Tree. Over the past year, Clorox's prices ranged from $127.60 to $169.09, with a yearly change of 32.52%. Dollar Tree's prices fluctuated between $60.49 and $151.22, with a yearly change of 149.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.