AM vs UMS Which Is Superior?

AM (Active Management) and UMS (Ultra Macro Strategy) stocks are two distinct investment strategies that cater to different types of investors. AM stocks are actively managed by fund managers who strive to outperform the market through diligent research and timely decision-making. On the other hand, UMS stocks are part of a broader macro strategy that focuses on top-down analysis of global economic trends and events. Both approaches have their own advantages and drawbacks, making it essential for investors to understand their risk tolerance and investment goals before choosing between the two.

AM or UMS?

When comparing AM 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 AM 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. AM 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. AM reports a 5-year dividend growth of 0.00% 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 AM P/E ratio at -1.90 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. AM P/B ratio is 0.22 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, AM has seen a 5-year revenue growth of 0.00%, while UMS's is 1.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AM's ROE at -11.30% and UMS's ROE at 12.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.05 for AM and S$1.01 for UMS. Over the past year, AM's prices ranged from HK$0.04 to HK$0.10, with a yearly change of 134.09%. 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.