ITC vs VST Industries Which Is More Lucrative?

ITC Limited and VST Industries Limited are two prominent companies in the Indian tobacco industry. Both companies have a strong presence in the market and offer diverse investment opportunities for shareholders. ITC is known for its diversified business portfolio, while VST Industries focuses primarily on tobacco-related products. Investors often compare the performance of these two stocks, considering factors such as revenue growth, profitability, and market share. Understanding the key differences and similarities between ITC and VST Industries stocks is essential for making informed investment decisions.

ITC or VST Industries?

When comparing ITC and VST Industries, 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 ITC and VST Industries.

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. ITC has a dividend yield of 2.88%, while VST Industries has a dividend yield of 45.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ITC reports a 5-year dividend growth of 11.18% year and a payout ratio of 0.00%. On the other hand, VST Industries reports a 5-year dividend growth of 14.12% 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 ITC P/E ratio at 29.06 and VST Industries's P/E ratio at 23.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ITC P/B ratio is 7.93 while VST Industries's P/B ratio is 4.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ITC has seen a 5-year revenue growth of 0.45%, while VST Industries's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ITC's ROE at 27.92% and VST Industries's ROE at 20.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹474.10 for ITC and ₹328.10 for VST Industries. Over the past year, ITC's prices ranged from ₹399.35 to ₹528.50, with a yearly change of 32.34%. VST Industries's prices fluctuated between ₹288.62 and ₹486.15, with a yearly change of 68.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.