MPI vs AL Which Is a Smarter Choice?

When it comes to investing in the stock market, there are a multitude of options to choose from, including both MPI (mean price indicator) and AL (alpha) stocks. MPI stocks focus on determining the average price of a security over a set period of time, providing insight into potential market trends. On the other hand, AL stocks rely on assessing a stock's performance relative to the broader market, measuring its alpha or excess return. Understanding the differences between these two types of stocks can help investors make informed decisions about their portfolios.

MPI or AL?

When comparing MPI and AL, 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 MPI and AL.

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. MPI has a dividend yield of 0.94%, while AL has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MPI reports a 5-year dividend growth of 69.52% year and a payout ratio of 40.60%. On the other hand, AL 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 MPI P/E ratio at 47.21 and AL's P/E ratio at -16.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MPI P/B ratio is 9.15 while AL's P/B ratio is -36.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MPI has seen a 5-year revenue growth of 0.51%, while AL's is -0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MPI's ROE at 20.74% and AL's ROE at 166.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$788.00 for MPI and HK$0.58 for AL. Over the past year, MPI's prices ranged from NT$205.50 to NT$875.00, with a yearly change of 325.79%. AL's prices fluctuated between HK$0.48 and HK$1.07, with a yearly change of 122.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.