ATS vs STS Which Is More Reliable?

ATS (Alternative Trading System) and STS (Small Trading Stock) are two different types of stocks that investors can trade on the stock market. ATS stocks are securities that are traded on an alternative trading system, which is a platform that allows for the trading of securities outside of traditional stock exchanges. On the other hand, STS stocks are small-cap stocks of companies with market capitalizations below a certain threshold. Both types of stocks have their own set of benefits and risks, making them suitable for different types of investors.

ATS or STS?

When comparing ATS and STS, 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 ATS and STS.

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. ATS has a dividend yield of -%, while STS has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, STS reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.27%.

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 ATS P/E ratio at 39.41 and STS's P/E ratio at -22.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATS P/B ratio is 2.62 while STS's P/B ratio is 0.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATS has seen a 5-year revenue growth of 1.30%, while STS's is -0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATS's ROE at 7.32% and STS's ROE at -2.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $30.82 for ATS and €3.84 for STS. Over the past year, ATS's prices ranged from $24.82 to $44.70, with a yearly change of 80.10%. STS's prices fluctuated between €3.22 and €7.25, with a yearly change of 125.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.