Hugo Boss vs Guess' Which Offers More Value?

Hugo Boss and Guess are two well-known fashion brands that have become popular choices for investors looking to capitalize on the lucrative luxury retail market. Both companies have a strong presence in the global fashion industry, with a focus on high-quality products and innovative marketing strategies. However, their stocks have shown varying performances over the years, with Hugo Boss often seen as a more stable and consistent investment option compared to the more volatile Guess. This article will delve into the key factors influencing the stocks of both companies and provide insights for potential investors.

Hugo Boss or Guess'?

When comparing Hugo Boss and Guess', 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 Hugo Boss and Guess'.

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. Hugo Boss has a dividend yield of 3.47%, while Guess' has a dividend yield of 22.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hugo Boss reports a 5-year dividend growth of -18.06% year and a payout ratio of 0.01%. On the other hand, Guess' reports a 5-year dividend growth of 4.56% year and a payout ratio of 135.90%.

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 Hugo Boss P/E ratio at 2.56 and Guess''s P/E ratio at 5.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hugo Boss P/B ratio is 0.42 while Guess''s P/B ratio is 1.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hugo Boss has seen a 5-year revenue growth of 6.51%, while Guess''s is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hugo Boss's ROE at 16.49% and Guess''s ROE at 24.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.00 for Hugo Boss and $14.96 for Guess'. Over the past year, Hugo Boss's prices ranged from $6.59 to $15.36, with a yearly change of 133.08%. Guess''s prices fluctuated between $14.96 and $33.50, with a yearly change of 123.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.