MPI vs ATP 30 Which Is More Attractive?

MPI and ATP 30 stocks are two distinct investment strategies that cater to different types of investors. MPI, or Modern Portfolio Investing, focuses on constructing a diversified portfolio of stocks based on modern portfolio theory. On the other hand, ATP 30 stocks represent a more concentrated approach, with a focus on investing in only 30 carefully selected stocks. Both strategies have their own set of advantages and disadvantages, making it crucial for investors to carefully evaluate their financial goals and risk tolerance before choosing between the two.

MPI or ATP 30?

When comparing MPI and ATP 30, 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 ATP 30.

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 0.95%, while ATP 30 has a dividend yield of 2.08%. 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, ATP 30 reports a 5-year dividend growth of 0.00% year and a payout ratio of 33.93%.

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 47.50 and ATP 30's P/E ratio at 16.28. 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 9.09 while ATP 30's P/B ratio is 1.25.

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 ATP 30's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MPI's ROE at 20.74% and ATP 30's ROE at 7.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$781.00 for MPI and ฿0.96 for ATP 30. Over the past year, MPI's prices ranged from NT$205.50 to NT$875.00, with a yearly change of 325.79%. ATP 30's prices fluctuated between ฿0.81 and ฿1.33, with a yearly change of 64.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.