Pool vs Whirlpool Which Should You Buy?

Pool vs. Whirlpool stocks represent two distinct sectors in the financial market. Pool stocks are related to companies that are involved in the manufacturing and distribution of swimming pool equipment and services, while Whirlpool stocks pertain to companies specializing in the production of home appliances, particularly appliances related to water like washing machines and dishwashers. Both sectors have their own unique set of factors that can influence their stock performance, making them interesting options for investors looking to diversify their portfolios.

Pool or Whirlpool?

When comparing Pool and Whirlpool, 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 Pool and Whirlpool.

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. Pool has a dividend yield of 1.26%, while Whirlpool has a dividend yield of 6.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pool reports a 5-year dividend growth of 20.11% year and a payout ratio of 39.39%. On the other hand, Whirlpool reports a 5-year dividend growth of 9.00% year and a payout ratio of 68.04%.

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 Pool P/E ratio at 31.59 and Whirlpool's P/E ratio at 11.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pool P/B ratio is 9.89 while Whirlpool's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pool has seen a 5-year revenue growth of 0.93%, while Whirlpool's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pool's ROE at 32.53% and Whirlpool's ROE at 20.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $372.71 for Pool and $108.76 for Whirlpool. Over the past year, Pool's prices ranged from $293.51 to $422.73, with a yearly change of 44.03%. Whirlpool's prices fluctuated between $84.18 and $125.68, with a yearly change of 49.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.