ITV vs STV Which Should You Buy?

ITV and STV are two prominent broadcasting companies that operate in the UK. ITV, a widely recognized television network, has a strong presence in both national and regional markets. Its stock has shown resilience and growth over the years, largely due to its diverse programming and advertising revenues. In contrast, STV focuses primarily on serving the Scottish audience, with a localized approach to content and advertising. Both stocks offer unique opportunities for investors looking to capitalize on the broadcasting industry.

ITV or STV?

When comparing ITV and STV, 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 ITV and STV.

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. ITV has a dividend yield of 5.43%, while STV has a dividend yield of 4.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ITV reports a 5-year dividend growth of 0.00% year and a payout ratio of 44.98%. On the other hand, STV reports a 5-year dividend growth of -8.89% year and a payout ratio of 75.36%.

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 ITV P/E ratio at 57.08 and STV's P/E ratio at 15.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ITV P/B ratio is 15.65 while STV's P/B ratio is -214.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ITV has seen a 5-year revenue growth of -0.89%, while STV's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ITV's ROE at 28.19% and STV's ROE at -172.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.05 for ITV and £226.00 for STV. Over the past year, ITV's prices ranged from $7.02 to $11.02, with a yearly change of 56.98%. STV's prices fluctuated between £181.00 and £297.00, with a yearly change of 64.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.