iFAST vs SGX: Which Growth Stock Could Deliver Better Returns in 2026?

Core Insights - The article compares two growth stocks in Singapore: iFAST Corporation, a fintech platform, and Singapore Exchange (SGX), a blue-chip exchange operator, highlighting their growth potential and market positions as interest rates are expected to fall by 2026 [1][8]. iFAST Corporation - iFAST has transitioned from a fund distribution platform to a digital wealth infrastructure player, achieving a net revenue growth of 39.9% year-on-year to S$89.53 million and a net profit increase of 54.7% year-on-year to S$26 million for 3Q 2025 [2]. - The company's assets under administration (AUA) reached an all-time high of S$30.62 billion, growing 29.6% year-on-year [2]. - iFAST's profit before tax margin improved to 34.5% for 9M 2025, up from 22.6% in 2023 and 33.5% in 2024, indicating a new phase of profitability [3]. - Recent initiatives include the introduction of payment services and the approval to operate as an Electronic Money Issuer in Malaysia, which could enhance profitability [4]. Singapore Exchange (SGX) - SGX serves as the backbone of Singapore's capital markets, with a revenue breakdown showing that the Equities-Cash segment contributed 30.3% and the Equities-Derivatives segment contributed 26.6% to total net revenue for FY25 [5]. - SGX's net profit attributable to equity holders grew from S$445 million in FY2021 to S$648 million in FY2025, with dividends increasing from S$0.32 to S$0.375 during the same period [6]. - Recent partnerships, such as with Climate Impact X, and expansion in Foreign Exchange derivatives are expected to drive growth [7]. Comparative Analysis - iFAST offers higher growth potential with a revenue growth rate of 29.5% CAGR over three years, while SGX has a more stable growth rate of 7.6% [9]. - iFAST has a profit margin of 18.5% compared to SGX's 47.3%, and a lower dividend yield of 0.7% versus SGX's 2.2% [9]. - The choice between iFAST and SGX depends on investor preferences for growth acceleration versus stable compounding [10]. Key Catalysts and Risks - For iFAST, successful digital platform rollouts and margin expansion are potential growth drivers, while delays or contract risks could negatively impact valuation [11]. - SGX's growth will depend on market turnover and derivatives volume recovery, with lower volatility potentially limiting momentum [11]. - Both companies could benefit from macro trends such as rate cuts and improved investor sentiment [12]. Investor Considerations - Investors should monitor earnings growth and dividend policies for both companies through 2025, as well as valuation movements post-rate cuts [13][14]. - A diversified investment approach could involve holding both stocks to balance growth and stability [15].