SMS vs DMS

SMS (Stock Market Simulation) and DMS (Direct Market Access) are two key players in the world of stock trading. SMS stocks are typically traded on traditional stock exchanges, such as the NYSE or NASDAQ, where buyers and sellers interact through brokers. On the other hand, DMS stocks are traded directly between buyers and sellers through electronic communication networks, bypassing the need for a broker. Both options have their own advantages and disadvantages, making them popular choices amongst traders looking to maximize their investments.

SMS or DMS?

When comparing SMS and DMS, 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 SMS and DMS.

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. SMS has a dividend yield of 0.89%, while DMS has a dividend yield of 5.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SMS reports a 5-year dividend growth of 2.90% year and a payout ratio of 0.00%. On the other hand, DMS reports a 5-year dividend growth of 16.54% 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 SMS P/E ratio at 27.91 and DMS's P/E ratio at 8.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SMS P/B ratio is 4.26 while DMS's P/B ratio is 0.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SMS has seen a 5-year revenue growth of 0.75%, while DMS's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SMS's ROE at 15.89% and DMS's ROE at 6.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2226.50 for SMS and ¥1555.00 for DMS. Over the past year, SMS's prices ranged from ¥1794.00 to ¥2924.00, with a yearly change of 62.99%. DMS's prices fluctuated between ¥1307.00 and ¥1965.00, with a yearly change of 50.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.