STI vs CTR Which Is a Better Investment?

STI (Straits Times Index) and CTR (Composite Tape Reading) stocks are two different types of stocks that are traded in the financial markets. STI stocks represent a collection of the top companies listed on the Singapore Exchange, providing investors with exposure to the Singaporean economy. On the other hand, CTR stocks are based on a method of analyzing trading volume to predict price movements in individual stocks. Both types of stocks offer opportunities for investors to diversify their portfolios and potentially earn returns.

STI or CTR?

When comparing STI and CTR, 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 STI and CTR.

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. STI has a dividend yield of 1.76%, while CTR has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STI reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.09%. On the other hand, CTR reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 STI P/E ratio at 10.74 and CTR's P/E ratio at 4.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STI P/B ratio is 0.86 while CTR's P/B ratio is 0.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STI has seen a 5-year revenue growth of 0.03%, while CTR's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and CTR's ROE at 5.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩13620.00 for STI and HK$0.04 for CTR. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. CTR's prices fluctuated between HK$0.04 and HK$0.09, with a yearly change of 130.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.