Dow vs Starbucks Which Is More Promising?

When comparing Dow Inc. and Starbucks stocks, it is important to consider the specific industries and market conditions that impact these two companies. Dow Inc. is a leading global materials science company, while Starbucks is a multinational coffeehouse chain. The performance of each stock may vary based on factors such as consumer demand, raw material costs, economic trends, and competition. By analyzing the financial data and market trends of both companies, investors can make informed decisions about their investment strategy.

Dow or Starbucks?

When comparing Dow and Starbucks, 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 Dow and Starbucks.

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. Dow has a dividend yield of 6.05%, while Starbucks has a dividend yield of 1.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dow reports a 5-year dividend growth of 0.00% year and a payout ratio of 184.68%. On the other hand, Starbucks reports a 5-year dividend growth of 10.35% year and a payout ratio of 68.73%.

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 Dow P/E ratio at 30.54 and Starbucks's P/E ratio at 30.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dow P/B ratio is 1.77 while Starbucks's P/B ratio is -15.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dow has seen a 5-year revenue growth of -0.22%, while Starbucks's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dow's ROE at 5.78% and Starbucks's ROE at -46.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $46.17 for Dow and $97.94 for Starbucks. Over the past year, Dow's prices ranged from $46.17 to $60.69, with a yearly change of 31.45%. Starbucks's prices fluctuated between $71.55 and $107.66, with a yearly change of 50.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.