Intesanpaolo vs UniCredit SpA Which Should You Buy?

Intesa Sanpaolo and UniCredit SpA are two of the largest and most well-known banks in Italy. Both companies are listed on the Milan Stock Exchange and are key players in the European financial sector. Investors often compare the performance of these two stocks due to their similar market positioning and business operations. Intesa Sanpaolo is known for its strong domestic presence and focus on retail banking, while UniCredit is more internationally focused and has a diverse range of financial services. Understanding the differences between these two stocks can help investors make informed decisions in the competitive banking sector.

Intesanpaolo or UniCredit SpA?

When comparing Intesanpaolo and UniCredit SpA, 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 Intesanpaolo and UniCredit SpA.

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. Intesanpaolo has a dividend yield of 7.76%, while UniCredit SpA has a dividend yield of 7.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Intesanpaolo reports a 5-year dividend growth of 5.10% year and a payout ratio of 0.00%. On the other hand, UniCredit SpA reports a 5-year dividend growth of 25.27% year and a payout ratio of 2.64%.

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 Intesanpaolo P/E ratio at 35.96 and UniCredit SpA's P/E ratio at 5.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Intesanpaolo P/B ratio is 4.70 while UniCredit SpA's P/B ratio is 0.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Intesanpaolo has seen a 5-year revenue growth of -0.80%, while UniCredit SpA's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Intesanpaolo's ROE at 13.38% and UniCredit SpA's ROE at 16.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.68 for Intesanpaolo and €38.91 for UniCredit SpA. Over the past year, Intesanpaolo's prices ranged from $17.15 to $26.96, with a yearly change of 57.20%. UniCredit SpA's prices fluctuated between €23.46 and €44.17, with a yearly change of 88.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.