Blue Star vs Voltas Which Offers More Value?

Blue Star and Voltas are two leading companies in the Indian consumer durables sector, both renowned for their air conditioning and refrigeration products. Investors often find themselves comparing the performance of these two stocks due to their similarities in product offerings and market presence. While Blue Star has a longer history and stronger brand recognition, Voltas has shown consistent growth and a solid financial track record. Both stocks are considered to be strong contenders in the market, making the decision between them a tough choice for investors.

Blue Star or Voltas?

When comparing Blue Star and Voltas, 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 Blue Star and Voltas.

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. Blue Star has a dividend yield of 0.34%, while Voltas has a dividend yield of 0.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Blue Star reports a 5-year dividend growth of 31.95% year and a payout ratio of 0.00%. On the other hand, Voltas reports a 5-year dividend growth of 1.22% 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 Blue Star P/E ratio at 80.24 and Voltas's P/E ratio at 106.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Blue Star P/B ratio is 15.44 while Voltas's P/B ratio is 9.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Blue Star has seen a 5-year revenue growth of 0.79%, while Voltas's is 0.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Blue Star's ROE at 20.40% and Voltas's ROE at 9.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2042.35 for Blue Star and ₹1780.00 for Voltas. Over the past year, Blue Star's prices ranged from ₹901.55 to ₹2199.55, with a yearly change of 143.97%. Voltas's prices fluctuated between ₹849.40 and ₹1944.90, with a yearly change of 128.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.