Vail Resorts vs Alterra Which Is More Favorable?

Vail Resorts and Alterra Mountain Company are two major players in the ski resort industry, each owning a portfolio of popular ski destinations around the world. Both companies offer unique investment opportunities in the leisure and hospitality sector. Vail Resorts, with its iconic destinations like Vail, Breckenridge, and Park City, has historically performed well in the stock market. Alterra, on the other hand, is a rapidly growing competitor with resorts like Aspen/Snowmass and Mammoth Mountain in its portfolio. Investors looking to capitalize on the winter sports industry may want to closely monitor the performance of both Vail Resorts and Alterra stocks.

Vail Resorts or Alterra?

When comparing Vail Resorts and Alterra, 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 Vail Resorts and Alterra.

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. Vail Resorts has a dividend yield of 4.58%, while Alterra has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Vail Resorts reports a 5-year dividend growth of 6.98% year and a payout ratio of 140.88%. On the other hand, Alterra 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 Vail Resorts P/E ratio at 30.61 and Alterra's P/E ratio at -1.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Vail Resorts P/B ratio is 16.07 while Alterra's P/B ratio is 0.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Vail Resorts has seen a 5-year revenue growth of 0.46%, while Alterra's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vail Resorts's ROE at 31.07% and Alterra's ROE at -26.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.99 for Vail Resorts and A$0.00 for Alterra. Over the past year, Vail Resorts's prices ranged from $165.00 to $236.92, with a yearly change of 43.59%. Alterra's prices fluctuated between A$0.00 and A$0.01, with a yearly change of 266.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.