CMC vs IG Which Is More Attractive?

CMC Markets and IG Group are two of the leading online trading platforms in the world, offering a wide range of financial products to traders and investors. Both companies allow users to trade stocks, indices, commodities, and currencies through their user-friendly platforms. While they have similarities in terms of their product offerings and services, there are also key differences in their pricing, customer support, and trading tools. This article will compare CMC Markets and IG Group stocks to help you make an informed decision on which platform is best for your trading needs.

CMC or IG?

When comparing CMC and IG, 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 CMC and IG.

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. CMC has a dividend yield of 3.14%, while IG has a dividend yield of 4.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMC reports a 5-year dividend growth of 1.09% year and a payout ratio of 0.00%. On the other hand, IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%.

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 CMC P/E ratio at 11.67 and IG's P/E ratio at 6.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMC P/B ratio is 0.94 while IG's P/B ratio is 1.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMC has seen a 5-year revenue growth of 0.08%, while IG's is 0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC's ROE at 8.28% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1390.00 for CMC and £915.50 for IG. Over the past year, CMC's prices ranged from ¥1040.00 to ¥1492.00, with a yearly change of 43.46%. IG's prices fluctuated between £656.00 and £995.25, with a yearly change of 51.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.