SelfWealth vs CMC Which Offers More Value?

SelfWealth and CMC Markets are two popular investment platforms that cater to different types of investors. SelfWealth is a growing player in the Australian market, focusing on low-cost and user-friendly trading options. On the other hand, CMC Markets offers a wide range of products and services, making it a comprehensive choice for both beginner and experienced investors. Both platforms have their own unique features and benefits, making it important for investors to carefully consider their individual needs before making a decision.

SelfWealth or CMC?

When comparing SelfWealth and CMC, 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 SelfWealth and CMC.

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. SelfWealth has a dividend yield of -%, while CMC has a dividend yield of 3.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SelfWealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CMC reports a 5-year dividend growth of 1.09% 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 SelfWealth P/E ratio at 8.23 and CMC's P/E ratio at 11.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SelfWealth P/B ratio is 2.04 while CMC's P/B ratio is 0.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SelfWealth has seen a 5-year revenue growth of 12.93%, while CMC's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SelfWealth's ROE at 26.07% and CMC's ROE at 8.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$0.12 for SelfWealth and ¥1390.00 for CMC. Over the past year, SelfWealth's prices ranged from A$0.10 to A$0.17, with a yearly change of 66.67%. CMC's prices fluctuated between ¥1040.00 and ¥1492.00, with a yearly change of 43.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.