SMS vs Text Which Is a Smarter Choice?

SMS vs text stocks refers to the debate between investing in companies that focus on short message service (SMS) technology versus those that specialize in text messaging platforms. While both technologies are widely used for communication, SMS stocks may focus more on traditional SMS services, while text stocks may encompass a broader range of messaging platforms. Investors must consider factors such as market trends, competition, and technological advancements when deciding where to allocate their funds in this sector.

SMS or Text?

When comparing SMS and Text, 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 Text.

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 1.65%, while Text has a dividend yield of 11.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SMS reports a 5-year dividend growth of 21.67% year and a payout ratio of 12.95%. On the other hand, Text reports a 5-year dividend growth of 30.61% year and a payout ratio of 25.35%.

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 15.39 and Text's P/E ratio at 8.48. 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 2.41 while Text's P/B ratio is 9.85.

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 Text's is 2.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SMS's ROE at 15.06% and Text's ROE at 122.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1195.50 for SMS and zł54.10 for Text. Over the past year, SMS's prices ranged from ¥1124.00 to ¥2670.50, with a yearly change of 137.59%. Text's prices fluctuated between zł48.00 and zł99.80, with a yearly change of 107.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.