Overstock.com vs Wayfair Which Is More Profitable?

Overstock.com and Wayfair are two popular online retailers that specialize in home furnishings and decor. Both companies have seen significant growth in their stock prices in recent years, with Overstock.com focusing on discounted merchandise and Wayfair offering a broad selection of products at varying price points. Investors may be drawn to Overstock.com for its potential for high returns, while Wayfair's strong brand recognition and customer base could make it a more stable investment option. It's important for investors to carefully research and consider their options before choosing between these two retail giants.

Overstock.com or Wayfair?

When comparing Overstock.com and Wayfair, 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 Wayfair.

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 Wayfair 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, Wayfair 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 Wayfair's P/E ratio at -8.64. 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 Wayfair's P/B ratio is -1.70.

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 Wayfair's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Wayfair's ROE at 19.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.20 for Overstock.com and $37.72 for Wayfair. Over the past year, Overstock.com's prices ranged from $6.20 to $39.18, with a yearly change of 531.90%. Wayfair's prices fluctuated between $37.60 and $76.17, with a yearly change of 102.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.