SP vs SSP Which Offers More Value?

Stocks of SP and SSP companies are two different financial instruments that investors should be familiar with. SP stocks refer to companies that are classified as Special Purpose Acquisition Companies, which are formed for the sole purpose of acquiring another company through a merger or acquisition. On the other hand, SSP stocks represent companies that are in the Socially Responsible Investing sector. Investors looking to diversify their portfolio with socially responsible investments should consider adding SSP stocks to their investment strategy.

SP or SSP?

When comparing SP and SSP, 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 SP and SSP.

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. SP has a dividend yield of 0.97%, while SSP has a dividend yield of 2.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SP reports a 5-year dividend growth of -12.94% year and a payout ratio of 17.16%. On the other hand, SSP reports a 5-year dividend growth of 0.00% year and a payout ratio of 261.84%.

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 SP P/E ratio at 17.64 and SSP's P/E ratio at 169.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SP P/B ratio is 2.38 while SSP's P/B ratio is 6.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SP has seen a 5-year revenue growth of 0.22%, while SSP's is -0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SP's ROE at 14.24% and SSP's ROE at 3.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr300.50 for SP and £157.80 for SSP. Over the past year, SP's prices ranged from kr171.80 to kr343.00, with a yearly change of 99.65%. SSP's prices fluctuated between £142.20 and £243.20, with a yearly change of 71.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.