Cricut vs Premium Brands Which Outperforms?

Investors looking to capitalize on the growing popularity of crafting and DIY projects may be considering investing in stocks of companies like Cricut and premium crafting brands. Cricut, known for its cutting machines and digital design tools, is a leader in the at-home crafting market. Premium brands, on the other hand, may offer higher quality products but come with a higher price tag. Both options have their own strengths and weaknesses, making them worth considering for investment opportunities.

Cricut or Premium Brands?

When comparing Cricut and Premium Brands, 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 Cricut and Premium Brands.

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. Cricut has a dividend yield of 8.29%, while Premium Brands has a dividend yield of 4.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cricut reports a 5-year dividend growth of 0.00% year and a payout ratio of 177.01%. On the other hand, Premium Brands reports a 5-year dividend growth of 10.14% year and a payout ratio of 145.77%.

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 Cricut P/E ratio at 20.82 and Premium Brands's P/E ratio at 35.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cricut P/B ratio is 2.72 while Premium Brands's P/B ratio is 2.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cricut has seen a 5-year revenue growth of 1.30%, while Premium Brands's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cricut's ROE at 12.37% and Premium Brands's ROE at 5.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.92 for Cricut and C$78.46 for Premium Brands. Over the past year, Cricut's prices ranged from $4.43 to $8.40, with a yearly change of 89.62%. Premium Brands's prices fluctuated between C$75.67 and C$97.28, with a yearly change of 28.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.