UBS vs BlackRock Which Outperforms?

UBS and BlackRock are two prominent players in the financial services industry, with both companies offering investment services to clients around the world. While UBS is a Swiss multinational investment bank and financial services company, BlackRock is an American global investment management corporation. Investors looking to compare these two stocks may consider factors such as market performance, financial stability, growth potential, and investment strategies. Each company has unique strengths and weaknesses that may appeal to different types of investors.

UBS or BlackRock?

When comparing UBS and BlackRock, 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 UBS and BlackRock.

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. UBS has a dividend yield of 2.03%, while BlackRock has a dividend yield of 2.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UBS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, BlackRock reports a 5-year dividend growth of 9.10% year and a payout ratio of 48.69%.

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 UBS P/E ratio at 21.35 and BlackRock's P/E ratio at 23.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UBS P/B ratio is 1.28 while BlackRock's P/B ratio is 3.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UBS has seen a 5-year revenue growth of 0.81%, while BlackRock's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UBS's ROE at 5.96% and BlackRock's ROE at 15.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.28 for UBS and $918.99 for BlackRock. Over the past year, UBS's prices ranged from $26.00 to $35.84, with a yearly change of 37.82%. BlackRock's prices fluctuated between $745.55 and $1084.22, with a yearly change of 45.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.