FMC vs MC Which Should You Buy?

FMC (firm-specific factors, market-wide factors, and common factors) and MC (market model and capital asset pricing model) stocks are two types of equities that investors consider when evaluating a company's performance and potential for returns. FMC stocks rely on a combination of factors unique to the firm, the market, and common influences, while MC stocks focus on the market model and the capital asset pricing model to determine a stock's value. Understanding the differences between these two approaches can help investors make more informed decisions on where to allocate their resources.

FMC or MC?

When comparing FMC and MC, 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 FMC and MC.

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. FMC has a dividend yield of 4.34%, while MC has a dividend yield of 8.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FMC reports a 5-year dividend growth of 20.99% year and a payout ratio of 19.96%. On the other hand, MC reports a 5-year dividend growth of 2.96% year and a payout ratio of 95.14%.

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 FMC P/E ratio at 4.59 and MC's P/E ratio at 11.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FMC P/B ratio is 1.45 while MC's P/B ratio is 2.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FMC has seen a 5-year revenue growth of 0.12%, while MC's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FMC's ROE at 32.55% and MC's ROE at 19.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.65 for FMC and ฿10.20 for MC. Over the past year, FMC's prices ranged from $50.03 to $68.72, with a yearly change of 37.36%. MC's prices fluctuated between ฿9.65 and ฿14.90, with a yearly change of 54.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.