NEXT vs ASOS Which Is More Lucrative?

NEXT and ASOS are two major players in the fashion retail industry, each with their own unique strengths and weaknesses. NEXT, a traditional high street retailer, has a strong brick-and-mortar presence and a loyal customer base. On the other hand, ASOS, an online-only retailer, has been a disruptor in the industry with its trendy and affordable fashion offerings. Both companies have experienced fluctuations in their stock prices due to changing consumer trends and market conditions. It will be interesting to see how they continue to compete in the ever-evolving retail landscape.

NEXT or ASOS?

When comparing NEXT and ASOS, 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 NEXT and ASOS.

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. NEXT has a dividend yield of 2.22%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NEXT reports a 5-year dividend growth of 1.85% year and a payout ratio of 30.91%. On the other hand, ASOS 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 NEXT P/E ratio at 14.62 and ASOS's P/E ratio at -1.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NEXT P/B ratio is 8.65 while ASOS's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NEXT has seen a 5-year revenue growth of 0.47%, while ASOS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NEXT's ROE at 55.99% and ASOS's ROE at -43.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £9579.86 for NEXT and $5.00 for ASOS. Over the past year, NEXT's prices ranged from £7952.00 to £11103.83, with a yearly change of 39.64%. ASOS's prices fluctuated between $4.11 and $5.89, with a yearly change of 43.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.