Five Below vs Sysco Which Is More Favorable?

Five Below and Sysco are two leading companies in very different sectors of the market. Five Below, a discount retail store, caters to budget-conscious consumers with a wide range of products priced at $5 or below. On the other hand, Sysco is a global leader in food distribution, providing a wide range of products to restaurants, schools, hospitals, and other institutions. Both companies have experienced growth and success in their respective industries, making them attractive options for investors looking to diversify their portfolios.

Five Below or Sysco?

When comparing Five Below and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.59%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 16.24 and Sysco's P/E ratio at 19.75. 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 2.84 while Sysco's P/B ratio is 17.38.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Five Below's ROE at 18.28% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $82.79 for Five Below and $77.34 for Sysco. Over the past year, Five Below's prices ranged from $64.87 to $216.18, with a yearly change of 233.25%. Sysco's prices fluctuated between $66.87 and $82.89, with a yearly change of 23.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.