STI vs M3 Which Is a Better Investment?

STI (Straits Times Index) and M3 (MoneyMax Financial Services Ltd.) stocks are two popular investment options that cater to different types of investors. STI stocks are blue-chip companies listed on the Singapore Exchange, offering stability and long-term growth potential. On the other hand, M3 stocks are financial services companies known for their high volatility and potential for quick gains. Both options have their own unique advantages and drawbacks, making it important for investors to carefully consider their investment goals and risk tolerance before choosing between them.

STI or M3?

When comparing STI and M3, 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 STI and M3.

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. STI has a dividend yield of 1.66%, while M3 has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STI reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.09%. On the other hand, M3 reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.01%.

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 STI P/E ratio at 11.46 and M3's P/E ratio at 11.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STI P/B ratio is 0.91 while M3's P/B ratio is 1.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STI has seen a 5-year revenue growth of 0.03%, while M3's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and M3's ROE at 12.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩14220.00 for STI and $4.77 for M3. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. M3's prices fluctuated between $3.79 and $8.78, with a yearly change of 131.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.