Garmin vs Vail Resorts Which Is More Lucrative?

Garmin and Vail Resorts are two companies operating in completely different industries. Garmin is a leading provider of GPS technology and wearable devices, while Vail Resorts is a renowned operator of ski resorts and luxury accommodations. Both companies have exhibited strong growth potential in recent years, attracting investors looking for diverse investment opportunities. As their stocks continue to gain attention in the market, investors are faced with the decision of choosing between these two promising companies for their investment portfolio.

Garmin or Vail Resorts?

When comparing Garmin and Vail Resorts, 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 Garmin and Vail Resorts.

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. Garmin has a dividend yield of 1.38%, while Vail Resorts has a dividend yield of 4.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%. On the other hand, Vail Resorts reports a 5-year dividend growth of 6.98% year and a payout ratio of 140.88%.

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 Garmin P/E ratio at 27.28 and Vail Resorts's P/E ratio at 30.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Garmin P/B ratio is 5.52 while Vail Resorts's P/B ratio is 16.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Garmin has seen a 5-year revenue growth of 0.54%, while Vail Resorts's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 21.10% and Vail Resorts's ROE at 31.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $214.46 for Garmin and $187.99 for Vail Resorts. Over the past year, Garmin's prices ranged from $119.15 to $222.97, with a yearly change of 87.13%. Vail Resorts's prices fluctuated between $165.00 and $236.92, with a yearly change of 43.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.