CMC vs SelfWealth

CMC Markets and SelfWealth are two popular online trading platforms that cater to investors seeking to buy and sell stocks. While both platforms offer similar services such as stock trading and research tools, there are some key differences between the two. CMC Markets is known for its advanced trading capabilities and comprehensive analysis tools, while SelfWealth is a more simplified platform with a focus on low-cost trading. Understanding the unique features of each platform can help investors make informed decisions when choosing where to invest.

CMC or SelfWealth?

When comparing CMC and SelfWealth, 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 CMC and SelfWealth.

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. CMC has a dividend yield of 3.68%, while SelfWealth has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMC reports a 5-year dividend growth of 1.09% year and a payout ratio of 0.00%. On the other hand, SelfWealth reports a 5-year dividend growth of 0.00% 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 CMC P/E ratio at 9.88 and SelfWealth's P/E ratio at 8.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMC P/B ratio is 0.80 while SelfWealth's P/B ratio is 2.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMC has seen a 5-year revenue growth of 0.08%, while SelfWealth's is 12.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC's ROE at 8.28% and SelfWealth's ROE at 26.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1185.00 for CMC and A$0.12 for SelfWealth. Over the past year, CMC's prices ranged from ¥1040.00 to ¥1360.00, with a yearly change of 30.77%. SelfWealth's prices fluctuated between A$0.10 and A$0.18, with a yearly change of 76.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.