STI vs SVI Which Should You Buy?

STI (short-term investments) and SVI (long-term investments) stocks represent two different investment strategies with varying risk and return profiles. STI stocks typically offer quick returns but come with higher volatility and fluctuation in price. On the other hand, SVI stocks are aimed at long-term growth and stability, offering more consistent returns over time. Understanding the differences between these two types of stocks is crucial for investors looking to diversify their portfolios and achieve their financial goals.

STI or SVI?

When comparing STI and SVI, 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 SVI.

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 SVI has a dividend yield of 1.86%. 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, SVI reports a 5-year dividend growth of 26.58% year and a payout ratio of 22.67%.

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 SVI's P/E ratio at 11.65. 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 SVI's P/B ratio is 2.05.

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 SVI's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and SVI's ROE at 17.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩14220.00 for STI and ฿7.20 for SVI. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. SVI's prices fluctuated between ฿5.95 and ฿9.40, with a yearly change of 57.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.