Chart of the Day: See the diverging fortunes of ComfortDelGro and SMRT

CDG has stable growth while SMRT has been declining.

ComfortDelGro and SMRT have been travelling on divergent roads in recent years. While it has been a relatively smooth ride for ComfortDelGro, the same could not be said for the bumpy path that SMRT has taken.

This chart from Macquarie shows that since 2011, ComfortDelGro's dividends have grown steadily, rising from 0.06 cents in 2011 to a projected 0.10 cents by the end of 2017.

Meanwhile, SMRT's dividends have fallen from a high of 0.07 cents in 2011 to a low of 0.02 cents in 2013. SMRT's 2017 dividends is expected to come in at 0.04 cents, or less than half of ComfortDelGro's.

Macquarie noted that the divergence was driven by the aggressive change in ComfortDelGro's business model.

"[ComfortDelGro] has ventured far beyond its core Singapore market, growing into one of the largest global land transport companies whilst SMRT has remained a largely Singapore-only transport operator, choosing rather to focus on the market they know. Their once similar business models have diverged; CD’s revenue exposure to the Singapore bus and rail market is a mere 24%, contributed largely by its market leading SG bus operations (19% bus and 5% rail), while SMRT’s exposure to the same is at 72% (19% bus and 53% rail)," said Macquarie.

"CD’s and SMRT’s varied dispositions, born out of very diverse business decisions over the years, have led them to stand on opposite sides of Singapore’s impending land transport policy changes. We expect quick progress on the bus policy front will see significant uplift to CD’s operations by the close of 2016, while the more complex rail changes could drag on, we believe leaving SMRT burned in the wake of its indecision,” the report said.