Waste Management vs Watches of Switzerland Which Is a Smarter Choice?

Waste Management and Watches of Switzerland are two very different companies operating in distinct sectors of the market. Waste Management is a leading provider of environmental services, focusing on waste collection, recycling, and disposal. On the other hand, Watches of Switzerland is a luxury watch retailer, catering to high-end consumers. Both companies have shown resilience and growth potential in their respective industries, making them popular choices for investors seeking stability and long-term returns.

Waste Management or Watches of Switzerland?

When comparing Waste Management and Watches of Switzerland, 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 Waste Management and Watches of Switzerland.

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. Waste Management has a dividend yield of 1.41%, while Watches of Switzerland has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%. On the other hand, Watches of Switzerland 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 Waste Management P/E ratio at 32.40 and Watches of Switzerland's P/E ratio at 33.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Waste Management P/B ratio is 10.72 while Watches of Switzerland's P/B ratio is 2.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Waste Management has seen a 5-year revenue growth of 0.45%, while Watches of Switzerland's is 1.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Waste Management's ROE at 35.91% and Watches of Switzerland's ROE at 7.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.21 for Waste Management and $7.35 for Watches of Switzerland. Over the past year, Waste Management's prices ranged from $173.01 to $230.39, with a yearly change of 33.17%. Watches of Switzerland's prices fluctuated between $4.84 and $7.52, with a yearly change of 55.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.