ICON vs PDS Which Is More Attractive?

Investing in stocks involves analyzing a company's financial performance and potential for growth. Two popular strategies that investors use are investing in ICON (Income Contingent Securities) stocks or PDS (Potential Dividend Stocks). ICON stocks are designed to provide a steady stream of income through regular dividends, while PDS stocks focus on capital appreciation and potential dividend growth. Each strategy has its own advantages and risks, making it important for investors to carefully consider their investment goals and risk tolerance before choosing between the two.

ICON or PDS?

When comparing ICON and PDS, 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 ICON and PDS.

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. ICON has a dividend yield of -%, while PDS has a dividend yield of 0.79%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ICON reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PDS 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 ICON P/E ratio at 23.05 and PDS's P/E ratio at 54.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ICON P/B ratio is 1.76 while PDS's P/B ratio is 5.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ICON has seen a 5-year revenue growth of 1.06%, while PDS's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ICON's ROE at 7.87% and PDS's ROE at 11.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $206.19 for ICON and ₹570.05 for PDS. Over the past year, ICON's prices ranged from $183.38 to $347.72, with a yearly change of 89.62%. PDS's prices fluctuated between ₹394.70 and ₹620.80, with a yearly change of 57.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.