Why you should dump SMRT for ComfortDelgro stocks

Latter has stronger yields, argues OSK-DMG.

"We recommend investors to switch from SMRT to ComfortDelGro, for stronger yields arising from the latter’s better growth potential," says OSK-DMG, after SMRT reported poor 2QFY14 results which saw its PATAMI slide 57% yoy to S$14.4m.

Currently SMRT is trading at an unattractive valuation, the research firm adds, compared to ComfortDelGro. SMRT is also set to grapple with still-escalating staff costs that will hurt the group's margins despite an anticipated fare hike.

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