SMS vs SSP Which Should You Buy?

SMS (Short Message Service) and SSP (Supply-Side Platform) stocks are two distinct sectors within the tech industry that offer investors unique opportunities for growth and profitability. SMS stocks represent companies that specialize in providing text messaging services, while SSP stocks center around platforms that connect publishers with advertisers. Each sector has its own set of dynamics and market trends, making it crucial for investors to understand the distinctions between the two before making investment decisions. This article will delve into the key differences and similarities between SMS and SSP stocks, as well as provide insights on how investors can navigate these sectors effectively.

SMS or SSP?

When comparing SMS and SSP, 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 SSP.

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 1.21%, while SSP has a dividend yield of 1.96%. 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, SSP reports a 5-year dividend growth of 0.00% year and a payout ratio of 261.84%.

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 20.36 and SSP's P/E ratio at 198.00. 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 3.00 while SSP's P/B ratio is 7.91.

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 SSP's is -0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SMS's ROE at 15.11% and SSP's ROE at 3.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1616.00 for SMS and £186.40 for SSP. Over the past year, SMS's prices ranged from ¥1541.00 to ¥2924.00, with a yearly change of 89.75%. SSP's prices fluctuated between £142.20 and £243.20, with a yearly change of 71.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.