UMS vs Polygon Real Estate Which Is a Smarter Choice?

UMS Holdings Limited and Polygon Real Estate Group are two prominent companies in the real estate sector, each offering unique investment opportunities for shareholders. UMS specializes in providing electronics manufacturing services for the semiconductor industry, while Polygon focuses on residential and commercial property development. Both companies have experienced steady growth in recent years, making them attractive options for investors seeking exposure to the real estate market. In this comparison, we will analyze the financial performance, market positioning, and growth potential of UMS and Polygon to determine which stock may be the better investment option.

UMS or Polygon Real Estate?

When comparing UMS and Polygon Real Estate, 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 Polygon Real Estate.

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 5.4%, while Polygon Real Estate 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, Polygon Real Estate reports a 5-year dividend growth of 0.00% 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 Polygon Real Estate's P/E ratio at 10.31. 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 1.73 while Polygon Real Estate's P/B ratio is 1.31.

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 Polygon Real Estate's is 0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UMS's ROE at 12.90% and Polygon Real Estate's ROE at 13.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$0.99 for UMS and ₪4349.00 for Polygon Real Estate. Over the past year, UMS's prices ranged from S$0.97 to S$1.58, with a yearly change of 62.89%. Polygon Real Estate's prices fluctuated between ₪31.17 and ₪4458.00, with a yearly change of 14202.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.