UT vs AL Which Is a Better Investment?

The stocks of the University of Tennessee (UT) and the University of Alabama (AL) are among the most popular collegiate investment options for fans and alumni. Both universities have strong financial backing and a loyal fan base that contribute to the success of their stock performance. UT and AL stocks are highly sought after for their potential for growth and stability, making them attractive choices for investors looking to support their alma mater while also potentially earning a return on their investment.

UT or AL?

When comparing UT and AL, 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 UT and AL.

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. UT has a dividend yield of 4.52%, while AL has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UT reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, AL 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 UT P/E ratio at 9.08 and AL's P/E ratio at -15.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UT P/B ratio is 2.45 while AL's P/B ratio is -36.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UT has seen a 5-year revenue growth of 0.59%, while AL's is -0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UT's ROE at 28.80% and AL's ROE at 166.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2123.00 for UT and HK$0.57 for AL. Over the past year, UT's prices ranged from ¥1942.00 to ¥3770.00, with a yearly change of 94.13%. AL's prices fluctuated between HK$0.48 and HK$0.98, with a yearly change of 104.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.