UMS vs NC Which Is a Smarter Choice?

UMS Holdings Limited (UMS) and Nanometrics Incorporated (NC) are both leading companies in the semiconductor industry. UMS specializes in precision engineering and manufacturing services for the semiconductor sector, while NC is a provider of advanced process control systems for the semiconductor and other high-technology industries. Both companies are well-positioned in a rapidly evolving market and are known for their innovation, reliability, and commitment to excellence. This article will compare the stock performance and key financial metrics of UMS and NC to help investors make informed decisions about their investment portfolios.

UMS or NC?

When comparing UMS and NC, 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 NC.

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 5.35%, while NC has a dividend yield of 2.96%. 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, NC reports a 5-year dividend growth of 45.41% 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 14.19 and NC's P/E ratio at 20.06. 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 1.74 while NC's P/B ratio is 1.26.

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 NC's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UMS's ROE at 12.90% and NC's ROE at 6.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$1.00 for UMS and ¥2199.00 for NC. Over the past year, UMS's prices ranged from S$0.97 to S$1.58, with a yearly change of 62.89%. NC's prices fluctuated between ¥1420.00 and ¥2290.00, with a yearly change of 61.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.