RM vs RMB Which Is More Reliable?

RM vs RMB stocks refer to the differences between stocks denominated in Malaysian Ringgit (RM) and Chinese Renminbi (RMB). While both currencies are widely traded in their respective countries, there are key distinctions to consider when investing in stocks in these currencies. RM stocks are typically associated with companies in Malaysia, while RMB stocks are linked to Chinese companies. Understanding the economic and political environments of each country is crucial in determining the potential risks and returns of investing in RM vs RMB stocks.

RM or RMB?

When comparing RM and RMB, 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 RM and RMB.

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. RM has a dividend yield of -%, while RMB has a dividend yield of 68.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. RM reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, RMB 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 RM P/E ratio at -1.79 and RMB's P/E ratio at 26.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. RM P/B ratio is 6.88 while RMB's P/B ratio is 0.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, RM has seen a 5-year revenue growth of -0.13%, while RMB's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with RM's ROE at -311.10% and RMB's ROE at 1.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £98.00 for RM and R41.00 for RMB. Over the past year, RM's prices ranged from £51.00 to £106.00, with a yearly change of 107.84%. RMB's prices fluctuated between R34.00 and R69.00, with a yearly change of 102.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.