GEM vs AMP Which Is More Attractive?

GEM and AMP stocks are two popular investment options for those looking to grow their wealth in the stock market. GEM, or Growth Enterprise Market, is a platform for smaller companies to raise capital through the issuance of shares. These stocks often offer high growth potential but also come with higher risk. On the other hand, AMP, or Australian Mutual Provident, is a financial services company that offers a range of investment and insurance products. Both GEM and AMP stocks have their own unique advantages and disadvantages, making them suitable for different types of investors.

GEM or AMP?

When comparing GEM and AMP, 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 GEM and AMP.

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. GEM has a dividend yield of 1.16%, while AMP has a dividend yield of 3.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GEM reports a 5-year dividend growth of 13.97% year and a payout ratio of 119.03%. On the other hand, AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%.

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 GEM P/E ratio at 27.27 and AMP's P/E ratio at 32.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GEM P/B ratio is 1.82 while AMP's P/B ratio is 1.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GEM has seen a 5-year revenue growth of 0.63%, while AMP's is -0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GEM's ROE at 6.73% and AMP's ROE at 3.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥6.86 for GEM and $0.66 for AMP. Over the past year, GEM's prices ranged from ¥3.95 to ¥7.84, with a yearly change of 98.48%. AMP's prices fluctuated between $0.58 and $0.94, with a yearly change of 62.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.