CTS vs STS Which Is More Favorable?

CTS (Cognizant Technology Solutions) and STS (Supreme Industries) are two distinct stocks in the market. CTS is a global technology services and consulting company, while STS is a manufacturer of plastic piping systems and storage tanks. Both stocks offer unique opportunities for investors looking to diversify their portfolios. CTS has a strong presence in the IT sector, while STS provides exposure to the industrial materials industry. Understanding the differences between these stocks can help investors make informed decisions in their investment strategies.

CTS or STS?

When comparing CTS 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 CTS 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. CTS has a dividend yield of 0.28%, while STS has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CTS reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.23%. 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 CTS P/E ratio at 28.59 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. CTS P/B ratio is 3.22 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, CTS has seen a 5-year revenue growth of 0.23%, while STS's is -0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CTS's ROE at 11.39% and STS's ROE at -2.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.64 for CTS and €3.84 for STS. Over the past year, CTS's prices ranged from $40.09 to $59.68, with a yearly change of 48.87%. 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.