LTS vs STS Which Offers More Value?

In the world of investing, two terms that often come up are LTS (long-term stable) and STS (short-term speculative) stocks. LTS stocks are typically those with established businesses, stable growth, and consistent dividends. Investors looking for steady returns and minimal risk tend to favor LTS stocks. On the other hand, STS stocks are more volatile, with the potential for higher returns but also greater risk. It's important for investors to understand the differences and risks associated with each type of stock before adding them to their portfolio.

LTS or STS?

When comparing LTS 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 LTS 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. LTS has a dividend yield of -%, while STS has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LTS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 LTS P/E ratio at 20.45 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. LTS P/B ratio is 2.62 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, LTS has seen a 5-year revenue growth of 3.01%, while STS's is -0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LTS's ROE at 13.32% and STS's ROE at -2.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2246.00 for LTS and €3.84 for STS. Over the past year, LTS's prices ranged from ¥1450.00 to ¥3010.00, with a yearly change of 107.59%. 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.