EPL vs MLS Which Is More Profitable?

The English Premier League (EPL) and Major League Soccer (MLS) are two of the most popular professional football leagues in the world. While both leagues attract a large fan base and generate significant revenue, there are distinct differences in their business models and financial performance. EPL stocks tend to be more lucrative and stable due to the league's global appeal and lucrative broadcasting deals, while MLS stocks are still emerging and offer potential growth opportunities for investors looking to tap into the growing popularity of soccer in the United States.

EPL or MLS ?

When comparing EPL and MLS , 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 EPL and MLS .

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. EPL has a dividend yield of 1.73%, while MLS has a dividend yield of 7.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EPL reports a 5-year dividend growth of 12.37% year and a payout ratio of 0.00%. On the other hand, MLS reports a 5-year dividend growth of -20.85% year and a payout ratio of 124.61%.

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 EPL P/E ratio at 34.11 and MLS 's P/E ratio at 29.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EPL P/B ratio is 4.01 while MLS 's P/B ratio is 1.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EPL has seen a 5-year revenue growth of 0.42%, while MLS 's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EPL's ROE at 12.49% and MLS 's ROE at 3.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹274.20 for EPL and ¥8.75 for MLS . Over the past year, EPL's prices ranged from ₹169.60 to ₹289.90, with a yearly change of 70.93%. MLS 's prices fluctuated between ¥5.77 and ¥9.77, with a yearly change of 69.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.