IDT vs IST Which Is a Smarter Choice?

IDT Corporation (IDT) and IST Limited (IST) are both publicly traded companies in the technology sector, but they offer investors different opportunities for potential growth and returns. IDT focuses on telecommunications and payment services, with a diverse portfolio of products that cater to both consumer and business markets. On the other hand, IST specializes in software development and IT consulting services, offering solutions for a wide range of industries. Both companies have demonstrated strong performance in their respective fields, making them worth considering for investment opportunities. However, investors should carefully evaluate the risks and potential rewards associated with each company before making any investment decisions.

IDT or IST?

When comparing IDT and IST, 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 IDT and IST.

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. IDT has a dividend yield of 0.39%, while IST has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.93%. On the other hand, IST 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 IDT P/E ratio at 20.21 and IST's P/E ratio at 7.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IDT P/B ratio is 5.29 while IST's P/B ratio is 0.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IDT has seen a 5-year revenue growth of -0.23%, while IST's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDT's ROE at 29.55% and IST's ROE at 11.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $49.80 for IDT and ₹923.50 for IST. Over the past year, IDT's prices ranged from $27.09 to $51.42, with a yearly change of 89.83%. IST's prices fluctuated between ₹201.00 and ₹945.00, with a yearly change of 370.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.