Retail Estates vs Retail Which Is More Profitable?

Retail estates and retail stocks are two popular investment options in the retail sector. Retail estates are physical properties used for retail purposes, such as shopping malls or individual stores. Investing in retail estates can provide stable income through rental yields. On the other hand, retail stocks are shares of companies operating in the retail industry. Investing in retail stocks can offer the potential for capital appreciation and dividends. Both options have their own advantages and risks, and investors should carefully consider their financial goals and risk tolerance before making a decision.

Retail Estates or Retail?

When comparing Retail Estates and Retail, 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 Retail Estates and Retail.

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. Retail Estates has a dividend yield of 5.76%, while Retail has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Retail Estates reports a 5-year dividend growth of 22.18% year and a payout ratio of 136.56%. On the other hand, Retail reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.95%.

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 Retail Estates P/E ratio at 17.34 and Retail's P/E ratio at 8.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Retail Estates P/B ratio is 0.75 while Retail's P/B ratio is 0.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Retail Estates has seen a 5-year revenue growth of 0.29%, while Retail's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Retail Estates's ROE at 4.40% and Retail's ROE at 2.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €60.60 for Retail Estates and $0.07 for Retail. Over the past year, Retail Estates's prices ranged from €58.10 to €71.90, with a yearly change of 23.75%. Retail's prices fluctuated between $0.02 and $0.13, with a yearly change of 527.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.