New players in the stock markets do not always know whose shares to choose: Sberbank or Gazprom, although they have heard that both are blue chips. The specialist of the financial portal Vyberu.ru figured out what are the similarities and differences between these two assets and where it is more profitable to purchase shares in your portfolio.
Similarities and differences between the assets of Gazprom and Sberbank
The main similarity when considering the shares of Gazprom and Sberbank is that they both belong to Russian companies in which the state is the main shareholder.
On the other hand, these are two businesses that compete with each other in terms of capitalization and belong to different spheres of the economy – finance and raw materials – the oil and gas sector.
To calculate the capitalization of a company, the number of outstanding shares is multiplied by their current value. Based on this indicator, investors conclude: how much the business is worth today.
The market capitalization of Sberbank is about 6,897 billion rubles, and of Gazprom, about 6,671 billion rubles.
What affects the profitability of the business of two companies
The profitability growth of Gazprom and Sberbank is influenced by:
- demand in the domestic and foreign markets;
- political factors;
- economic forces;
- other factors that are difficult to predict.
Both companies are influenced by the political situation both in the country and in the world. They are dependent on the introduction of new or the extension of old international sanctions. This has less impact on Sberbank, since its services are more focused on the domestic than the foreign market, although part of the business is located outside the country.
Gazprom is more dependent on global demand and export of raw materials outside the Russian Federation. The internal market brings less revenue to the company.
With the growth of the economy, the incomes of both commodity and financial companies grow. The banking sector shows slightly more stability during periods of market decline. Gazprom depends on the cost of a barrel: the higher energy prices, the more prospects the Russian oil and gas giant has. During these periods, more investors come for their share of the profit. And when the price of raw materials falls, stock exchange participants go to the financial sector to buy Sberbank shares and protect their portfolio.
How the price of shares of Gazprom and Sberbank has changed in previous periods
In dynamics since last year, the shares of Sberbank and Gazprom were worth:
|At the beginning of the month||Sberbank||Gazprom|
|Increase in the value of a share for a specified period||107.64||65.59|
If Sberbank shares were purchased at the beginning of June 2020, then at the beginning of June 2021 their current yield will be 52%, and for Gazprom shares – 33%. But these securities do not always show such a high yield. More often, investors earn 6-20% per annum on blue-chip stocks. If we consider the period of ownership of the same shares in 2020, the yield on Sberbank is 6.5% and the loss on Gazprom is 17.8%.
Sberbank of Russia stock quotes in 2021 have already increased by 18.22%, and Gazprom by 24.19%. At the moment, the commodity giant is performing slightly better than the country’s leading bank. But analysts predict high potential for the financial sector as well.
The dividend yield of shares is another indicator based on which investors choose an asset to buy into their portfolio:
|Dividend payments||Dividend Yield||Dividend payments||Dividend Yield|
Dividend yield is the ratio of the amount of dividends paid for the year per share to the value of one share.
According to this indicator, the companies differ slightly from each other, but Sberbank shows slightly higher profitability.
Which of these assets to invest in
Many novice and experienced investors take these assets into their portfolios.
Some investors are guided by the following scheme:
- When the ruble strengthens, they invest in Sberbank, but at the same time, the price per barrel often rises, so Gazprom usually shows high profitability.
- In the event of a weakening ruble and a high oil price, Gazprom shares look more attractive, so investors buy this asset in addition to their portfolio.
If investors are guided not by the ruble exchange rate, but by the growth and fall of the market, they are guided by the following rule:
- during periods of economic growth, they shift capital to the raw materials industry – Gazprom shares;
- in case of fears of a market drawdown, they “hide” in more stable shares of the financial sector and take Sberbank shares.
The main conclusion: long-term investment brings a higher profitability compared to a bank deposit or keeping cash, but this capital is not insured. An investor must be mentally prepared for the fact that any company or corporation in which the main shareholder is the state may become unprofitable if an unfavorable situation develops on the market.