Kohl's vs Target Which Is More Reliable?

Kohl's and Target are two popular retail giants that compete in the fiercely competitive industry of consumer goods. Both companies have a strong presence in the market, but their stocks have performed differently over the years. Kohl's has faced challenges due to changes in consumer shopping habits and increasing competition from online retailers. On the other hand, Target has shown resilience and adaptability, leading to strong growth and a loyal customer base. Let's delve deeper into the performance and prospects of Kohl's and Target stocks.

Kohl's or Target?

When comparing Kohl's and Target, 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 Kohl's and Target.

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. Kohl's has a dividend yield of 13.38%, while Target has a dividend yield of 2.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kohl's reports a 5-year dividend growth of -3.90% year and a payout ratio of 77.82%. On the other hand, Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 45.29%.

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 Kohl's P/E ratio at 7.30 and Target's P/E ratio at 15.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kohl's P/B ratio is 0.54 while Target's P/B ratio is 4.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kohl's has seen a 5-year revenue growth of 0.29%, while Target's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kohl's's ROE at 7.43% and Target's ROE at 33.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.63 for Kohl's and $149.90 for Target. Over the past year, Kohl's's prices ranged from $17.41 to $29.60, with a yearly change of 70.02%. Target's prices fluctuated between $107.13 and $181.86, with a yearly change of 69.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.