SSP vs SP Which Is More Reliable?

SSP (Stable Sales Per Share) and SP (Sales Per Share) are two important metrics used by investors to analyze the performance of a company. SSP calculates the sales generated by a company on a per share basis, while SP measures the overall sales of the company. SSP is considered a more reliable indicator of a company's financial health as it accounts for any changes in the number of shares outstanding. Understanding the differences between SSP and SP stocks can help investors make informed decisions when evaluating potential investments.

SSP or SP?

When comparing SSP and SP, 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 SSP and SP.

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. SSP has a dividend yield of 1.99%, while SP has a dividend yield of 0.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SSP reports a 5-year dividend growth of 0.00% year and a payout ratio of 261.84%. On the other hand, SP reports a 5-year dividend growth of -12.94% year and a payout ratio of 14.66%.

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 SSP P/E ratio at 195.48 and SP's P/E ratio at 14.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SSP P/B ratio is 7.81 while SP's P/B ratio is 2.27.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SSP has seen a 5-year revenue growth of -0.33%, while SP's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SSP's ROE at 3.65% and SP's ROE at 16.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £184.60 for SSP and kr297.50 for SP. Over the past year, SSP's prices ranged from £142.20 to £243.20, with a yearly change of 71.03%. SP's prices fluctuated between kr171.80 and kr343.00, with a yearly change of 99.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.