Citigroup vs Macquarie Which Is a Better Investment?

Citigroup and Macquarie Group are two major players in the global financial services industry. Citigroup, one of the largest banks in the world, offers a wide range of services including investment banking, wealth management, and consumer banking. Macquarie Group, an Australian-based financial services company, is known for its expertise in infrastructure finance and asset management. Both stocks are closely watched by investors due to their strong track records and potential for growth in the ever-evolving financial landscape.

Citigroup or Macquarie?

When comparing Citigroup and Macquarie, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Citigroup and Macquarie.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Citigroup has a dividend yield of 3.07%, while Macquarie has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Citigroup reports a 5-year dividend growth of 6.20% year and a payout ratio of 68.31%. On the other hand, Macquarie reports a 5-year dividend growth of 24.83% year and a payout ratio of 76.63%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Citigroup P/E ratio at 17.73 and Macquarie's P/E ratio at 24.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Citigroup P/B ratio is 0.65 while Macquarie's P/B ratio is 2.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Citigroup has seen a 5-year revenue growth of 0.39%, while Macquarie's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Citigroup's ROE at 3.67% and Macquarie's ROE at 10.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $70.77 for Citigroup and $143.10 for Macquarie. Over the past year, Citigroup's prices ranged from $49.17 to $73.38, with a yearly change of 49.24%. Macquarie's prices fluctuated between $118.12 and $165.98, with a yearly change of 40.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.