MLS vs EPL Which Is More Lucrative?

Major League Soccer (MLS) and the English Premier League (EPL) are two of the most popular and successful soccer leagues in the world. Both leagues attract millions of fans globally and have seen significant growth in recent years. When comparing the stocks of MLS and EPL teams, there are distinct differences in financial performance, market value, and investment opportunities. Understanding these differences is crucial for investors looking to capitalize on the lucrative soccer market.

MLS or EPL?

When comparing MLS and EPL, 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 MLS and EPL.

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. MLS has a dividend yield of 7.97%, while EPL has a dividend yield of 1.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MLS reports a 5-year dividend growth of -29.37% year and a payout ratio of 124.61%. On the other hand, EPL reports a 5-year dividend growth of 12.37% year and a payout ratio of 0.00%.

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 MLS P/E ratio at 29.34 and EPL's P/E ratio at 36.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MLS P/B ratio is 1.01 while EPL's P/B ratio is 3.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MLS has seen a 5-year revenue growth of -0.22%, while EPL's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MLS 's ROE at 3.30% and EPL's ROE at 11.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8.68 for MLS and ₹251.40 for EPL. Over the past year, MLS 's prices ranged from ¥5.77 to ¥9.77, with a yearly change of 69.32%. EPL's prices fluctuated between ₹169.60 and ₹280.10, with a yearly change of 65.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.