STI vs UTI Which Is More Attractive?

STI (Short Term Investments) and UTI (Long Term Investments) stocks are two distinct types of investment strategies that cater to different preferences and risk tolerances among investors. STI stocks are typically associated with quick gains and high volatility, appealing to those with a higher risk appetite and shorter investment horizon. On the other hand, UTI stocks offer more stable returns over a longer period, attracting conservative investors looking for steady growth and income. Understanding the differences between these two types of stocks can help investors make informed decisions based on their financial goals and risk tolerance levels.

STI or UTI?

When comparing STI and UTI, 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 UTI.

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 UTI 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, UTI 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 11.46 and UTI's P/E ratio at -10.37. 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 UTI's P/B ratio is 61.76.

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 UTI's is -0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and UTI's ROE at -268.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩14220.00 for STI and ₩21950.00 for UTI. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. UTI's prices fluctuated between ₩19250.00 and ₩42550.00, with a yearly change of 121.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.