SSP vs SMS Which Is More Favorable?

SSP (Share Settlement Period) and SMS (Stock Market Settlement) are two different methods of settling trades in the stock market. SSP involves the physical delivery of securities and cash within a specified time frame, typically three business days after the trade date. On the other hand, SMS settles trades instantly through electronic means, allowing for quicker and more efficient transactions. Both methods have their advantages and disadvantages, making it important for investors to understand the differences between SSP and SMS stocks before making investment decisions.

SSP or SMS?

When comparing SSP and SMS, 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 SSP and SMS.

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. SSP has a dividend yield of 1.99%, while SMS has a dividend yield of 1.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SSP reports a 5-year dividend growth of 0.00% year and a payout ratio of 261.84%. On the other hand, SMS reports a 5-year dividend growth of 2.90% 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 SSP P/E ratio at 195.48 and SMS's P/E ratio at 19.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SSP P/B ratio is 7.81 while SMS's P/B ratio is 2.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SSP has seen a 5-year revenue growth of -0.33%, while SMS's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SSP's ROE at 3.65% and SMS's ROE at 15.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £184.60 for SSP and ¥1607.50 for SMS. Over the past year, SSP's prices ranged from £142.20 to £243.20, with a yearly change of 71.03%. SMS's prices fluctuated between ¥1541.00 and ¥2924.00, with a yearly change of 89.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.