HUB24 vs Netwealth

HUB24 and Netwealth are two leading Australian fintech companies operating in the wealth management sector. Both companies provide innovative technology solutions to financial advisors, allowing them to efficiently manage client portfolios and investments. HUB24 and Netwealth have seen steady growth in recent years, attracting investors looking to capitalize on the growing demand for digital wealth management services. As competition in the industry heats up, many investors are comparing the two stocks to determine which offers the most potential for growth and returns.

HUB24 or Netwealth?

When comparing HUB24 and Netwealth, 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 HUB24 and Netwealth.

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. HUB24 has a dividend yield of 0.58%, while Netwealth has a dividend yield of 0.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HUB24 reports a 5-year dividend growth of 56.16% year and a payout ratio of 29.34%. On the other hand, Netwealth reports a 5-year dividend growth of 35.89% year and a payout ratio of 79.01%.

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 HUB24 P/E ratio at 52.46 and Netwealth's P/E ratio at 83.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HUB24 P/B ratio is 10.29 while Netwealth's P/B ratio is 48.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HUB24 has seen a 5-year revenue growth of -0.70%, while Netwealth's is 1.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HUB24's ROE at 20.03% and Netwealth's ROE at 60.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$65.15 for HUB24 and A$28.13 for Netwealth. Over the past year, HUB24's prices ranged from A$29.50 to A$66.73, with a yearly change of 126.20%. Netwealth's prices fluctuated between A$12.06 and A$28.52, with a yearly change of 136.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.