MPI vs AMP Which Is a Smarter Choice?

Both MPI (Market Price of Investment) and AMP (Annual Market Price) stocks are popular options for investors looking to diversify their portfolios. MPI stocks reflect the current market price of an investment, making them a more volatile but potentially lucrative option. On the other hand, AMP stocks provide investors with a yearly snapshot of the market price of an investment, offering more stability but potentially lower returns. Understanding the differences between these two types of stocks can help investors make informed decisions when building their investment portfolios.

MPI or AMP?

When comparing MPI 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 MPI 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. MPI has a dividend yield of 0.92%, while AMP has a dividend yield of 2.98%. 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, 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 MPI P/E ratio at 46.23 and AMP's P/E ratio at 32.63. 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 9.36 while AMP's P/B ratio is 1.06.

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 AMP's is -0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MPI's ROE at 20.74% and AMP's ROE at 3.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$801.00 for MPI and $0.66 for AMP. Over the past year, MPI's prices ranged from NT$205.50 to NT$875.00, with a yearly change of 325.79%. 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.