Wacoal vs Victoria's Secret Which Should You Buy?

Wacoal and Victoria's Secret are two prominent companies in the lingerie industry, each with their own unique strengths and market presence. Wacoal, a Japanese brand known for its quality and comfort, has a strong foothold in the Asian market and a growing international presence. On the other hand, Victoria's Secret, an American brand famous for its seductive and glamorous image, has a strong brand recognition and loyal customer base globally. Both companies have seen fluctuations in their stock performance over the years, with investors closely monitoring their market strategies and financials to make informed investment decisions.

Wacoal or Victoria's Secret?

When comparing Wacoal and Victoria's Secret, 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 Wacoal and Victoria's Secret.

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. Wacoal has a dividend yield of 1.84%, while Victoria's Secret has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wacoal reports a 5-year dividend growth of 4.56% year and a payout ratio of -66.40%. On the other hand, Victoria's Secret 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 Wacoal P/E ratio at -35.46 and Victoria's Secret's P/E ratio at 25.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wacoal P/B ratio is 1.39 while Victoria's Secret's P/B ratio is 8.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wacoal has seen a 5-year revenue growth of 0.12%, while Victoria's Secret's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wacoal's ROE at -3.99% and Victoria's Secret's ROE at 35.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥5401.00 for Wacoal and $46.43 for Victoria's Secret. Over the past year, Wacoal's prices ranged from ¥3274.00 to ¥5472.00, with a yearly change of 67.14%. Victoria's Secret's prices fluctuated between $15.12 and $48.72, with a yearly change of 222.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.