Fast Retailing vs Retail Which Is Superior?

Fast Retailing, a Japanese retail company, has solidified its position as a global leader in the industry, boasting popular brands such as Uniqlo. On the other hand, traditional retail stocks have faced challenges due to the rise of e-commerce and changing consumer preferences. Fast Retailing's focus on innovation and customer experience has allowed it to thrive, while traditional retail stocks have had to adapt to stay competitive. This comparison highlights the contrast between a modern, fast-paced retailer and more traditional retail companies.

Fast Retailing or Retail?

When comparing Fast Retailing and Retail, 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 Fast Retailing and Retail.

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. Fast Retailing has a dividend yield of -%, while Retail has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fast Retailing reports a 5-year dividend growth of 138.00% year and a payout ratio of 28.19%. On the other hand, Retail reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.95%.

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 Fast Retailing P/E ratio at 41.69 and Retail's P/E ratio at 8.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fast Retailing P/B ratio is 7.23 while Retail's P/B ratio is 0.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fast Retailing has seen a 5-year revenue growth of 0.30%, while Retail's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fast Retailing's ROE at 18.88% and Retail's ROE at 2.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.66 for Fast Retailing and $0.07 for Retail. Over the past year, Fast Retailing's prices ranged from $22.93 to $37.96, with a yearly change of 65.55%. Retail's prices fluctuated between $0.02 and $0.13, with a yearly change of 527.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.