VST Industries vs ITC Which Should You Buy?

VST Industries and ITC are two major players in the Indian tobacco industry, with both companies having a significant presence in the market. VST Industries is a well-established player known for its strong brand presence and consistent financial performance. On the other hand, ITC, a diversified conglomerate, has a diverse business portfolio including tobacco products. Investors often compare the performance of these two stocks to make informed decisions about their investments in the tobacco sector.

VST Industries or ITC?

When comparing VST Industries and ITC, 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 VST Industries and ITC.

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. VST Industries has a dividend yield of 4.21%, while ITC has a dividend yield of 2.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VST Industries reports a 5-year dividend growth of 14.12% year and a payout ratio of 0.00%. On the other hand, ITC reports a 5-year dividend growth of 11.18% 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 VST Industries P/E ratio at 22.61 and ITC's P/E ratio at 28.70. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VST Industries P/B ratio is 4.85 while ITC's P/B ratio is 7.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, VST Industries has seen a 5-year revenue growth of 0.29%, while ITC's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VST Industries's ROE at 20.48% and ITC's ROE at 27.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹323.00 for VST Industries and ₹467.70 for ITC. Over the past year, VST Industries's prices ranged from ₹295.55 to ₹486.15, with a yearly change of 64.49%. ITC's prices fluctuated between ₹399.35 and ₹528.50, with a yearly change of 32.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.