STI vs Ferrari Which Is More Reliable?

STI and Ferrari stocks represent two very different ends of the automotive spectrum. STI, Subarus parent company, is known for their reliable, practical and affordable vehicles while Ferrari is synonymous with luxury, speed and extravagance. Both companies are recognized worldwide, but their stock performance reflects their distinct markets and customer bases. STI may appeal to more conservative investors looking for long-term stability, while Ferrari stocks may attract those seeking high risk, high reward opportunities in the luxury car market.

STI or Ferrari?

When comparing STI and Ferrari, 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 Ferrari.

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 1.66%, while Ferrari has a dividend yield of 0.55%. 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, Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 1.80%.

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 11.46 and Ferrari's P/E ratio at 53.45. 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 0.91 while Ferrari's P/B ratio is 22.91.

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 Ferrari's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and Ferrari's ROE at 44.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩14220.00 for STI and $445.70 for Ferrari. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. Ferrari's prices fluctuated between $330.15 and $498.23, with a yearly change of 50.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.