Saputo vs Saratoga Investment Which Performs Better?

Saputo and Saratoga Investment are two companies operating in different sectors, both offering compelling investment opportunities for traders and investors. Saputo, a leading dairy company, has a strong presence in the global market and consistently delivers solid financial results. On the other hand, Saratoga Investment is a business development company that provides financing solutions to middle-market companies. Both stocks have their own unique strengths and growth prospects, making them attractive options for investors seeking diversification in their portfolio.

Saputo or Saratoga Investment?

When comparing Saputo and Saratoga Investment, 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 Saputo and Saratoga Investment.

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. Saputo has a dividend yield of 2.87%, while Saratoga Investment has a dividend yield of 13.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Saputo reports a 5-year dividend growth of 2.35% year and a payout ratio of 125.42%. On the other hand, Saratoga Investment reports a 5-year dividend growth of 6.48% year and a payout ratio of 124.16%.

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 Saputo P/E ratio at 47.02 and Saratoga Investment'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. Saputo P/B ratio is 1.50 while Saratoga Investment's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Saputo has seen a 5-year revenue growth of 0.18%, while Saratoga Investment's is 1.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Saputo's ROE at 3.30% and Saratoga Investment's ROE at 5.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are C$26.12 for Saputo and $23.92 for Saratoga Investment. Over the past year, Saputo's prices ranged from C$25.28 to C$32.15, with a yearly change of 27.18%. Saratoga Investment's prices fluctuated between $21.56 and $26.49, with a yearly change of 22.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.