AEM vs UMS Which Is More Profitable?

AEM and UMS are two companies in the semiconductor industry that have gained significant attention from investors. AEM, a Singapore-based company, specializes in advanced manufacturing equipment for the electronics industry. On the other hand, UMS, also based in Singapore, focuses on the assembly and testing of semiconductors. Both companies have experienced growth in recent years due to the increasing demand for electronic devices. Investors are closely examining the differences in their business models and financial performance to determine which stock presents a better investment opportunity.

AEM or UMS?

When comparing AEM and UMS, 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 AEM and UMS.

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. AEM has a dividend yield of -%, while UMS has a dividend yield of 5.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AEM reports a 5-year dividend growth of -33.41% year and a payout ratio of 0.00%. On the other hand, UMS reports a 5-year dividend growth of 14.04% year and a payout ratio of 76.66%.

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 AEM P/E ratio at -21.71 and UMS's P/E ratio at 14.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AEM P/B ratio is 0.92 while UMS's P/B ratio is 1.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AEM has seen a 5-year revenue growth of 0.61%, while UMS's is 1.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AEM's ROE at -4.22% and UMS's ROE at 12.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$1.38 for AEM and S$1.01 for UMS. Over the past year, AEM's prices ranged from S$1.16 to S$3.47, with a yearly change of 198.74%. UMS's prices fluctuated between S$0.97 and S$1.58, with a yearly change of 62.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.