FedEx vs Five Below

FedEx and Five Below are two very different companies in terms of their business models and target markets. FedEx is a global logistics and shipping company that has a wide range of services aimed at businesses and consumers. On the other hand, Five Below is a retail store that sells trendy items, all priced at $5 or below, catering to teenagers and young adults. Both companies have shown strong growth in their respective industries, making them attractive options for investors looking for diverse investment opportunities.

FedEx or Five Below?

When comparing FedEx and Five Below, 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 FedEx and Five Below.

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. FedEx has a dividend yield of 1.99%, while Five Below has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. On the other hand, Five Below 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 FedEx P/E ratio at 16.23 and Five Below's P/E ratio at 18.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FedEx P/B ratio is 2.42 while Five Below's P/B ratio is 3.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FedEx has seen a 5-year revenue growth of 0.45%, while Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and Five Below's ROE at 18.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $265.66 for FedEx and $90.63 for Five Below. Over the past year, FedEx's prices ranged from $224.69 to $313.84, with a yearly change of 39.68%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.