MLS vs Manchester United Which Should You Buy?

Major League Soccer (MLS) and Manchester United stocks offer investors two very different opportunities in the sports industry. While MLS is a growing league in the United States with potential for long-term growth and expansion, Manchester United is a globally recognized and established brand with a rich history in European football. Both stocks present unique investment opportunities based on their respective market positions, financial performances, and growth potential. This analysis will compare and contrast the investment potential of MLS and Manchester United stocks.

MLS or Manchester United?

When comparing MLS and Manchester United, 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 Manchester United.

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 7.89%, while Manchester United has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MLS reports a 5-year dividend growth of -20.85% year and a payout ratio of 124.61%. On the other hand, Manchester United reports a 5-year dividend growth of 0.00% 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 29.71 and Manchester United's P/E ratio at -26.16. 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 1.02 while Manchester United's P/B ratio is 15.20.

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 -0.21%, while Manchester United's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MLS 's ROE at 3.30% and Manchester United's ROE at -60.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8.66 for MLS and $16.75 for Manchester United. Over the past year, MLS 's prices ranged from ¥5.77 to ¥9.77, with a yearly change of 69.32%. Manchester United's prices fluctuated between $13.50 and $22.00, with a yearly change of 62.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.