Overstock.com vs Canadian Tire Which Is Superior?

Overstock.com and Canadian Tire are two well-known companies in the retail industry with stocks that appeal to different types of investors. Overstock.com is an online retailer known for its wide range of products and competitive prices, making it an attractive option for those looking to invest in e-commerce. On the other hand, Canadian Tire is a traditional brick-and-mortar retailer that offers a diverse portfolio of products, attracting investors interested in the stability of a long-standing retail brand. Both stocks have their own unique strengths and weaknesses, appealing to investors with different risk tolerance levels and investment goals.

Overstock.com or Canadian Tire?

When comparing Overstock.com and Canadian Tire, 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 Overstock.com and Canadian Tire.

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. Overstock.com has a dividend yield of -%, while Canadian Tire has a dividend yield of 4.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Overstock.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Canadian Tire reports a 5-year dividend growth of 11.12% year and a payout ratio of 93.42%.

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 Overstock.com P/E ratio at -0.83 and Canadian Tire's P/E ratio at 22.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Overstock.com P/B ratio is 1.43 while Canadian Tire's P/B ratio is 1.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Overstock.com has seen a 5-year revenue growth of -0.43%, while Canadian Tire's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Canadian Tire's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.02 for Overstock.com and $107.66 for Canadian Tire. Over the past year, Overstock.com's prices ranged from $6.02 to $39.18, with a yearly change of 550.79%. Canadian Tire's prices fluctuated between $91.50 and $120.47, with a yearly change of 31.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.