FDM vs FMC Which Is Superior?

FDM (Fused Deposition Modeling) and FMC (Flexible Metal Conduit) stocks are both popular investment options in the manufacturing and construction industries. While FDM stocks are associated with 3D printing technology, FMC stocks are related to electrical wiring applications. Both sectors have seen significant growth in recent years, with FDM stocks benefitting from increased demand for customizable manufacturing solutions, and FMC stocks from the rise in infrastructure development projects. Investors should carefully evaluate the potential risks and rewards of each sector before making investment decisions.

FDM or FMC?

When comparing FDM and FMC, 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 FDM and FMC.

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. FDM has a dividend yield of 9.12%, while FMC has a dividend yield of 4.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FDM reports a 5-year dividend growth of 4.78% year and a payout ratio of 121.29%. On the other hand, FMC reports a 5-year dividend growth of 20.99% year and a payout ratio of 19.96%.

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 FDM P/E ratio at 8.68 and FMC's P/E ratio at 4.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FDM P/B ratio is 5.16 while FMC's P/B ratio is 1.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FDM has seen a 5-year revenue growth of 0.35%, while FMC's is 0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FDM's ROE at 55.59% and FMC's ROE at 32.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £313.50 for FDM and $56.42 for FMC. Over the past year, FDM's prices ranged from £300.00 to £491.00, with a yearly change of 63.67%. FMC's prices fluctuated between $50.03 and $68.72, with a yearly change of 37.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.