Zalando vs Farfetch Which Outperforms?

Zalando and Farfetch are two major players in the e-commerce fashion industry, each with its unique strengths and opportunities. Zalando, based in Germany, is known for its focus on logistics and customer service, while Farfetch, headquartered in the UK, is recognized for its innovative technology and partnerships with luxury brands. Both companies have experienced significant growth in recent years, but investors may be curious to compare their stock performances and potential for future success in the competitive fashion market.

Zalando or Farfetch?

When comparing Zalando and Farfetch, 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 Farfetch.

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 Farfetch 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, Farfetch 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 22.19 and Farfetch's P/E ratio at 0.00. 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 1.81 while Farfetch's P/B ratio is 0.00.

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 Farfetch's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zalando's ROE at 8.38% and Farfetch's ROE at 85.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.21 for Zalando and $0.00 for Farfetch. Over the past year, Zalando's prices ranged from $8.68 to $18.67, with a yearly change of 115.09%. Farfetch's prices fluctuated between $0.00 and $6.76, with a yearly change of 6758400.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.