Farfetch vs Zalando Which Offers More Value?

Farfetch and Zalando are both leading e-commerce platforms in the fashion industry, offering a wide range of designer clothing and accessories to customers worldwide. While Farfetch focuses on luxury fashion brands, Zalando caters to a more mainstream audience with a diverse selection of affordable and trendy items. Both companies have been experiencing significant growth in recent years, but investors may be wondering which stock is a better investment. In this comparison, we will analyze the performance and potential of Farfetch versus Zalando stocks.

Farfetch or Zalando?

When comparing Farfetch and Zalando, 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 Farfetch and Zalando.

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. Farfetch has a dividend yield of -%, while Zalando has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Farfetch reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Zalando 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 Farfetch P/E ratio at 0.00 and Zalando's P/E ratio at 23.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Farfetch P/B ratio is 0.00 while Zalando's P/B ratio is 1.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Farfetch has seen a 5-year revenue growth of 0.00%, while Zalando's is 2.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Farfetch's ROE at 85.87% and Zalando's ROE at 6.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for Farfetch and $14.50 for Zalando. Over the past year, Farfetch's prices ranged from $0.00 to $6.76, with a yearly change of 6758400.00%. Zalando's prices fluctuated between $8.68 and $17.10, with a yearly change of 97.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.