UMS vs AEM Which Is More Promising?

UMS Holdings Limited and AEM Holdings Limited are two prominent players in the semiconductor industry, both listed on the Singapore Exchange. UMS specializes in precision engineering and manufacturing services, while AEM focuses on equipment solutions for advanced packaging and testing in the semiconductor industry. Both companies have seen significant growth and are constantly innovating in response to the ever-changing technological landscape. This comparison will delve into their financial performance, market positioning, and growth opportunities to determine which stock may be a better investment option.

UMS or AEM?

When comparing UMS and AEM, 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 UMS and AEM.

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. UMS has a dividend yield of 6.41%, while AEM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UMS reports a 5-year dividend growth of 14.04% year and a payout ratio of 76.66%. On the other hand, AEM reports a 5-year dividend growth of -33.41% 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 UMS P/E ratio at 14.60 and AEM's P/E ratio at -20.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UMS P/B ratio is 1.78 while AEM's P/B ratio is 0.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UMS has seen a 5-year revenue growth of 1.35%, while AEM's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UMS's ROE at 12.90% and AEM's ROE at -4.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$1.03 for UMS and S$1.29 for AEM. Over the past year, UMS's prices ranged from S$0.97 to S$1.58, with a yearly change of 62.89%. AEM's prices fluctuated between S$1.16 and S$3.56, with a yearly change of 207.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.