Dollar Tree vs Clorox Which Is More Promising?

Dollar Tree and Clorox are two well-known companies in the stock market with distinct business models and market positions. Dollar Tree is a discount variety store that offers a wide range of products at low prices, while Clorox is a consumer goods company known for its household cleaning and personal care products. Investors considering these stocks may be interested in the contrasting strategies and market opportunities present in the discount retail and consumer goods sectors. Each company offers unique opportunities for growth and potential for long-term returns.

Dollar Tree or Clorox?

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

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. Dollar Tree has a dividend yield of -%, while Clorox has a dividend yield of 2.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dollar Tree reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Clorox reports a 5-year dividend growth of 5.05% year and a payout ratio of 167.23%.

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 Dollar Tree P/E ratio at -14.43 and Clorox's P/E ratio at 57.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dollar Tree P/B ratio is 1.97 while Clorox's P/B ratio is 340.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dollar Tree has seen a 5-year revenue growth of 0.45%, while Clorox's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dollar Tree's ROE at -14.09% and Clorox's ROE at 268.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $69.12 for Dollar Tree and $163.88 for Clorox. Over the past year, Dollar Tree's prices ranged from $60.49 to $151.22, with a yearly change of 149.99%. Clorox's prices fluctuated between $127.60 and $171.37, with a yearly change of 34.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.