UTI vs SBI Which Outperforms?

UTI and SBI stocks are two popular investment options in the Indian stock market. UTI stands for Unit Trust of India, while SBI refers to State Bank of India. Both companies offer investment opportunities in various sectors and have a strong presence in the market. UTI stocks are known for their diverse investment options, while SBI stocks are backed by the stability and reputation of India's largest public sector bank. Investors often compare the performance and growth potential of these two stocks to make informed decisions about their investment portfolios.

UTI or SBI?

When comparing UTI and SBI, 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 SBI.

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 SBI has a dividend yield of 4.16%. 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, SBI reports a 5-year dividend growth of -44.26% year and a payout ratio of 56.44%.

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 -10.37 and SBI's P/E ratio at 14.09. 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 61.76 while SBI's P/B ratio is 0.94.

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 SBI's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UTI's ROE at -268.34% and SBI's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩21950.00 for UTI and $25.72 for SBI. Over the past year, UTI's prices ranged from ₩19250.00 to ₩42550.00, with a yearly change of 121.04%. SBI's prices fluctuated between $19.00 and $27.02, with a yearly change of 42.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.