Kingsmen (SGX:5MZ) and Pico (HKG:0752) are both widely recognized as leaders of Asia Pacific’s corporate and events marketing field. However, these 2 firms have experienced vastly different fate in recent years.
Pico Up, Kingsmen Down
|Source: FT Markets|
Fundamentally, Pico has reported increased yearly net income since 2013. In contrast, Kingsmen’s income has been stagnating since 2012 before suffering a big dip in 2016. To make matters worse, Pico has outperformed Kingsmen on all measures of returns efficiency.
|Source: Google Finance, 2012 till date|
Over the course of the long term, share prices inevitably collapse in line with businesses’ fundamental performance. As such, it is of no surprise that Pico’s share price has outperformed Kingsmen since 2014. Since 2012, Pico has logged a 120% gain in share price while Kingsmen’s share price is hovering around 0% gain.
Naturally, Pico is also trading at higher multiples. Pico’s PE and PB is …