UTI vs Canara Bank Which Is a Better Investment?

UTI and Canara Bank are two prominent players in the Indian banking and financial services sector. UTI, also known as Unit Trust of India, is the country's premier asset management company with a strong track record in managing funds and investments. On the other hand, Canara Bank is a leading public sector bank with a widespread presence across India. Investors often compare the performance of UTI and Canara Bank stocks to make informed decisions and maximize their investment returns.

UTI or Canara Bank?

When comparing UTI and Canara Bank, 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 UTI and Canara Bank.

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. UTI has a dividend yield of -%, while Canara Bank has a dividend yield of 3.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UTI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Canara Bank 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 UTI P/E ratio at -10.96 and Canara Bank's P/E ratio at 5.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UTI P/B ratio is 19.61 while Canara Bank's P/B ratio is 0.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UTI has seen a 5-year revenue growth of -0.60%, while Canara Bank's is 2.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UTI's ROE at -134.22% and Canara Bank's ROE at 16.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩20200.00 for UTI and ₹101.12 for Canara Bank. Over the past year, UTI's prices ranged from ₩19250.00 to ₩42550.00, with a yearly change of 121.04%. Canara Bank's prices fluctuated between ₹77.80 and ₹128.90, with a yearly change of 65.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.