Overstock.com vs Five Below Which Outperforms?

Overstock.com and Five Below are two distinct companies in the retail industry with different target markets and business models. Overstock.com is an online retailer that specializes in discounted merchandise and furniture, while Five Below is a chain of discount stores catering to younger shoppers with trendy, low-priced products. Both companies have experienced growth in recent years, but Overstock.com has faced challenges with profitability, while Five Below has been consistently successful. Investors should consider the unique strengths and weaknesses of each stock before making any investment decisions.

Overstock.com or Five Below?

When comparing Overstock.com and Five Below, 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 Five Below.

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 Five Below has a dividend yield of -%. 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, Five Below 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 Overstock.com P/E ratio at -0.84 and Five Below's P/E ratio at 16.24. 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 1.45 while Five Below's P/B ratio is 2.84.

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 Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Five Below's ROE at 18.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.20 for Overstock.com and $82.79 for Five Below. Over the past year, Overstock.com's prices ranged from $6.20 to $39.18, with a yearly change of 531.90%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.