CS vs UBS Which Offers More Value?

When it comes to investing in financial stocks, two key players that investors often compare are Credit Suisse (CS) and UBS Group (UBS). Both Swiss-based multinational financial institutions, CS and UBS offer a range of services such as wealth management, investment banking, and asset management. However, there are notable differences in their business models, market performance, and competitive strengths. Understanding these distinctions is vital for investors seeking to make informed decisions about where to put their money in the financial sector.

CS or UBS?

When comparing CS and UBS, 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 CS and UBS.

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. CS has a dividend yield of 0.74%, while UBS has a dividend yield of 2.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CS reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.83%. On the other hand, UBS reports a 5-year dividend growth of -15.64% year and a payout ratio of 55.02%.

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 CS P/E ratio at 3.51 and UBS's P/E ratio at 25.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CS P/B ratio is 0.24 while UBS's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CS has seen a 5-year revenue growth of 0.47%, while UBS's is 1.91%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CS's ROE at 7.08% and UBS's ROE at 4.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩67200.00 for CS and $32.73 for UBS. Over the past year, CS's prices ranged from ₩58900.00 to ₩72300.00, with a yearly change of 22.75%. UBS's prices fluctuated between $26.00 and $33.34, with a yearly change of 28.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.