UTI vs Federal Bank Which Is More Favorable?

UTI and Federal Bank are two prominent players in the Indian financial sector, with both companies offering a range of products and services to their customers. While UTI is a leading asset management company, Federal Bank is a large private sector bank. Investors often compare the stocks of these two companies to assess their financial performance and potential for growth. With distinct business models and market positions, UTI and Federal Bank stocks present unique investment opportunities that cater to different risk profiles and investment objectives.

UTI or Federal Bank?

When comparing UTI and Federal 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 Federal 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 Federal Bank has a dividend yield of 0.58%. 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, Federal Bank reports a 5-year dividend growth of 2.13% 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 -10.75 and Federal Bank's P/E ratio at 12.31. 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 19.37 while Federal Bank's P/B ratio is 1.56.

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 Federal Bank's is 3.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UTI's ROE at -134.22% and Federal Bank's ROE at 13.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩19950.00 for UTI and ₹203.90 for Federal Bank. Over the past year, UTI's prices ranged from ₩19250.00 to ₩42550.00, with a yearly change of 121.04%. Federal Bank's prices fluctuated between ₹139.40 and ₹208.20, with a yearly change of 49.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.