Five Below vs Fastly Which Is a Smarter Choice?

Five Below and Fastly are two popular stocks that have caught the attention of investors in recent years. Five Below is a discount retailer known for its trendy products priced at $5 or less, while Fastly is a cloud computing company that specializes in content delivery and edge computing services. Both stocks have shown strong growth potential, but they operate in different industries and cater to different consumer markets. Investors should carefully consider their investment goals and risk tolerance when deciding between Five Below and Fastly stocks.

Five Below or Fastly?

When comparing Five Below and Fastly, 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 Five Below and Fastly.

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. Five Below has a dividend yield of -%, while Fastly has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Five Below reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Fastly 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 Five Below P/E ratio at 23.11 and Fastly's P/E ratio at -10.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Five Below P/B ratio is 3.84 while Fastly's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Five Below has seen a 5-year revenue growth of 1.29%, while Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Five Below's ROE at 16.79% and Fastly's ROE at -15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $111.10 for Five Below and $10.00 for Fastly. Over the past year, Five Below's prices ranged from $64.87 to $216.18, with a yearly change of 233.25%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.