STS vs CTS Which Should You Buy?

STS (Short-Term Stocks) and CTS (Long-Term Stocks) are two different investment options that cater to varying investment strategies. Short-term stocks are typically held for a brief period, often days or weeks, with the goal of making quick profits based on market fluctuations. On the other hand, long-term stocks are held for an extended period, usually years, with the aim of capital appreciation and dividends. Each type of stock carries its own risks and rewards, making it important for investors to carefully consider their financial goals and risk tolerance before making an investment decision.

STS or CTS?

When comparing STS and CTS, 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 STS and CTS.

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. STS has a dividend yield of 1.07%, while CTS has a dividend yield of 0.28%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STS reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.27%. On the other hand, CTS reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.23%.

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 STS P/E ratio at -22.21 and CTS's P/E ratio at 28.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STS P/B ratio is 0.54 while CTS's P/B ratio is 3.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STS has seen a 5-year revenue growth of -0.57%, while CTS's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STS's ROE at -2.39% and CTS's ROE at 11.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €3.84 for STS and $55.64 for CTS. Over the past year, STS's prices ranged from €3.22 to €7.25, with a yearly change of 125.16%. CTS's prices fluctuated between $40.09 and $59.68, with a yearly change of 48.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.