Zalando vs ASOS Which Outperforms?

Zalando and ASOS are two major players in the fashion e-commerce sector, both offering a wide range of trendy and affordable clothing options to consumers worldwide. Investors often compare these two companies as potential opportunities to profit from the growing online retail market. Zalando, based in Germany, is known for its strong presence in Europe, while ASOS, a UK-based company, has a global reach. Both stocks have experienced fluctuations in recent years, making them an interesting choice for investors looking to diversify their portfolio.

Zalando or ASOS?

When comparing Zalando and ASOS, 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 Zalando and ASOS.

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. Zalando has a dividend yield of -%, while ASOS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zalando reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASOS 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 Zalando P/E ratio at 21.93 and ASOS's P/E ratio at -1.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zalando P/B ratio is 1.79 while ASOS's P/B ratio is 0.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zalando has seen a 5-year revenue growth of 2.74%, while ASOS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zalando's ROE at 8.38% and ASOS's ROE at -43.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.06 for Zalando and $5.00 for ASOS. Over the past year, Zalando's prices ranged from $8.68 to $18.67, with a yearly change of 115.09%. ASOS's prices fluctuated between $4.11 and $5.89, with a yearly change of 43.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.