Deluxe vs ICON Which Should You Buy?

Deluxe and ICON stocks are two distinct categories of investments that cater to different types of investors. Deluxe stocks represent large, well-established companies with stable track records and consistent profitability. On the other hand, ICON stocks are high-growth companies with significant potential for expansion and innovation. While Deluxe stocks offer stability and lower risk, ICON stocks bring the possibility of higher returns but also greater volatility. Understanding the differences between these two types of stocks is crucial for investors looking to build a diversified and balanced portfolio.

Deluxe or ICON?

When comparing Deluxe and ICON, 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 Deluxe and ICON.

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. Deluxe has a dividend yield of 5.15%, while ICON has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Deluxe reports a 5-year dividend growth of 0.00% year and a payout ratio of 83.95%. On the other hand, ICON reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Deluxe P/E ratio at 16.04 and ICON's P/E ratio at 23.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Deluxe P/B ratio is 1.68 while ICON's P/B ratio is 1.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Deluxe has seen a 5-year revenue growth of 0.18%, while ICON's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Deluxe's ROE at 10.53% and ICON's ROE at 7.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.94 for Deluxe and $206.19 for ICON. Over the past year, Deluxe's prices ranged from $18.48 to $24.87, with a yearly change of 34.58%. ICON's prices fluctuated between $183.38 and $347.72, with a yearly change of 89.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.