Hargreaves Lansdown vs IG Which Is Stronger?

Hargreaves Lansdown and IG stocks are two well-known and reputable investment platforms in the UK, catering to investors with varying levels of experience and financial goals. Hargreaves Lansdown offers a wide range of investment products and services, including stocks, funds, and pensions, while IG stocks specializes in online trading with a focus on spread betting and CFDs. Both platforms have their strengths and weaknesses, making them suitable for different types of investors. This comparison will delve into the key features and benefits of each platform to help investors make informed decisions about where to invest their money.

Hargreaves Lansdown or IG?

When comparing Hargreaves Lansdown 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 Hargreaves Lansdown 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. Hargreaves Lansdown has a dividend yield of 5.25%, while IG has a dividend yield of 4.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hargreaves Lansdown reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.52%. 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 Hargreaves Lansdown P/E ratio at 7.99 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. Hargreaves Lansdown P/B ratio is 6.19 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, Hargreaves Lansdown has seen a 5-year revenue growth of 0.64%, while IG's is 0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hargreaves Lansdown's ROE at 82.68% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.65 for Hargreaves Lansdown and £915.50 for IG. Over the past year, Hargreaves Lansdown's prices ranged from $8.43 to $15.13, with a yearly change of 79.48%. 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.