IEX vs Nasdaq

IEX and Nasdaq are two major stock exchanges in the United States, each offering unique features and advantages for investors. While Nasdaq is known for its high-tech, electronic trading platform and diverse range of listed companies, IEX gained attention for its focus on fairness and transparency in the market. Investors may choose between the two based on their trading preferences and investment goals. Understanding the differences between IEX and Nasdaq stocks is crucial for making informed decisions in the stock market.

IEX or Nasdaq?

When comparing IEX and Nasdaq, 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 IEX and Nasdaq.

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. IEX has a dividend yield of -%, while Nasdaq has a dividend yield of 1.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IEX reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nasdaq reports a 5-year dividend growth of -12.74% year and a payout ratio of 52.80%.

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 IEX P/E ratio at 4.10 and Nasdaq's P/E ratio at 44.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IEX P/B ratio is 3.71 while Nasdaq's P/B ratio is 3.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IEX has seen a 5-year revenue growth of 0.07%, while Nasdaq's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IEX's ROE at 126.81% and Nasdaq's ROE at 9.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1.81 for IEX and $72.73 for Nasdaq. Over the past year, IEX's prices ranged from €1.50 to €1.95, with a yearly change of 30.00%. Nasdaq's prices fluctuated between $47.56 and $74.88, with a yearly change of 57.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.