Pick n Pay Stores vs Woolworths Which Should You Buy?

Pick n Pay Stores and Woolworths are two of the most well-known retail companies in South Africa. Both companies have a significant presence in the market, offering a wide range of products to consumers. Investors often compare the performance of Pick n Pay Stores and Woolworths stocks to make informed investment decisions. While both stocks have shown resilience in the face of economic challenges, they have their own unique strengths and weaknesses that investors should consider before making a decision.

Pick n Pay Stores or Woolworths?

When comparing Pick n Pay Stores and Woolworths, 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 Pick n Pay Stores and Woolworths.

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. Pick n Pay Stores has a dividend yield of -%, while Woolworths has a dividend yield of 4.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pick n Pay Stores reports a 5-year dividend growth of -6.32% year and a payout ratio of -17.10%. On the other hand, Woolworths reports a 5-year dividend growth of -4.41% year and a payout ratio of -520.71%.

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 Pick n Pay Stores P/E ratio at -4.54 and Woolworths's P/E ratio at -131.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pick n Pay Stores P/B ratio is 6.33 while Woolworths's P/B ratio is 6.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pick n Pay Stores has seen a 5-year revenue growth of 0.28%, while Woolworths's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pick n Pay Stores's ROE at -323.01% and Woolworths's ROE at -5.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are R3027.00 for Pick n Pay Stores and $19.28 for Woolworths. Over the past year, Pick n Pay Stores's prices ranged from R1662.00 to R3155.00, with a yearly change of 89.83%. Woolworths's prices fluctuated between $17.79 and $25.26, with a yearly change of 41.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.