Grupo Elektra vs Best Buy

Grupo Elektra and Best Buy are two prominent retail companies that have made a significant impact on the stock market. Grupo Elektra, a Mexican-based company, focuses primarily on electronics and household appliances, while Best Buy is a well-known American multinational retailer specializing in consumer electronics. Investors often compare the performance of these two stocks, analyzing factors such as revenue growth, market share, and profitability. Understanding the trends and dynamics of Grupo Elektra vs Best Buy stocks can provide valuable insights for investors looking to make informed decisions in the retail industry.

Grupo Elektra or Best Buy?

When comparing Grupo Elektra and Best Buy, 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 Grupo Elektra and Best Buy.

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. Grupo Elektra has a dividend yield of 0.55%, while Best Buy has a dividend yield of 3.83%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Grupo Elektra reports a 5-year dividend growth of 8.24% year and a payout ratio of 68.78%. On the other hand, Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.81%.

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 Grupo Elektra P/E ratio at 125.05 and Best Buy's P/E ratio at 16.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Grupo Elektra P/B ratio is 2.26 while Best Buy's P/B ratio is 6.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Grupo Elektra has seen a 5-year revenue growth of 0.83%, while Best Buy's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Grupo Elektra's ROE at 1.82% and Best Buy's ROE at 41.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are Mex$944.95 for Grupo Elektra and $97.13 for Best Buy. Over the past year, Grupo Elektra's prices ranged from Mex$941.24 to Mex$1210.24, with a yearly change of 28.58%. Best Buy's prices fluctuated between $62.30 and $103.71, with a yearly change of 66.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.