Key Differences Between Jardine Matheson And Jardine Strategic That Investors Have to Know

man question mark head confusedIf one takes a look at shares with the highest prices in Singapore, one will inevitably come across the two Jardine companies, Jardine Matheson (SGX: J36) and Jardine Strategic (SGX: J37). Both Jardines seem equally complex and large. Before we move on, two of my Foolish colleagues had earlier published a guide to Jardine Matheson and covered Jardine Strategic, so you can learn more about these two companies before we delve further into them.

Who Owns Who Now?

Jardine Strategic is a conglomerate with interests in many listed companies. The most puzzling feature about the company is that it owns 56% of Jardine Matheson, and Jardine Matheson owns 83% of Jardine Strategic in return. This unique feature brings us to the first key difference between the two.

Free Float

Since Jardine Matheson already owned a large block of Jardine Strategic, it makes the free float of the company to less than 20%. That will be considerable lesser than Jardine Matheson, investors looking to invest large amount into either companies should keep that in mind.

Larger Exposure To These Companies

Jardine Strategic is the direct major shareholder of HongKong Land (SGX: H78), Dairy Farm International (SGX: D01), Mandarin Oriental (SGX: M04) and Jardine Cycle & Carriage (SGX: C07). Jardine Matheson on the other hand, is only an indirect shareholder of these companies through Jardine Strategic. Therefore, investors who want to have larger exposure to the property, retailing and automotive industry should consider Jardine Strategic ahead of Jardine Matheson.

Jardine Matheson has a 42% interest in Jardine Lloyd Thompson, which is the group’s insurance and other financial services arm. Investing in Jardine Matheson will have a larger exposure to the insurance space compared to Jardine Strategic.

Foolish Summary

key difference jardine stock chart

SOURCE: Yahoo Finance, Jardine Matheson (Blue) vs Jardine Strategic (Red)

Despite the differences above, Jardine Matheson and Jardine Strategic are two very similar companies. Even their share movement have generally been in tandem with each other; with Jardine Strategic slightly outperforming Jardine Matheson.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.