UTI vs HSBC Which Is Stronger?

Both UTI and HSBC are well-known financial institutions that offer investment opportunities in the stock market. As UTI is a leading asset management company in India, while HSBC is a global banking and financial services organization headquartered in London. Investors often compare the two stocks to determine which one offers better potential for growth and return on investment. By analyzing factors such as financial performance, market reputation, and sector outlook, investors can make informed decisions on where to allocate their funds.

UTI or HSBC?

When comparing UTI and HSBC, 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 HSBC.

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 HSBC has a dividend yield of 10.11%. 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, HSBC reports a 5-year dividend growth of 0.62% 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 HSBC's P/E ratio at 6.97. 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 HSBC's P/B ratio is 0.85.

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 HSBC's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UTI's ROE at -134.22% and HSBC's ROE at 12.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩19950.00 for UTI and $45.08 for HSBC. Over the past year, UTI's prices ranged from ₩19250.00 to ₩42550.00, with a yearly change of 121.04%. HSBC's prices fluctuated between $36.93 and $47.56, with a yearly change of 28.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.