IG vs Cactus Which Should You Buy?

IG and Cactus stocks are two companies within the financial sector that have gained significant attention in recent years. IG, a popular online trading platform, has revolutionized the way people invest and trade in the stock market. On the other hand, Cactus stocks, a relatively new player in the industry, has quickly made a name for itself with its innovative approach to sustainable investing. Both companies offer unique opportunities for investors looking to diversify their portfolios and capitalize on market trends.

IG or Cactus?

When comparing IG and Cactus, 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 IG and Cactus.

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. IG has a dividend yield of 4.97%, while Cactus has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%. On the other hand, Cactus reports a 5-year dividend growth of 0.00% year and a payout ratio of 24.43%.

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 IG P/E ratio at 6.23 and Cactus's P/E ratio at 24.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IG P/B ratio is 1.89 while Cactus's P/B ratio is 3.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IG has seen a 5-year revenue growth of 0.97%, while Cactus's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Cactus's ROE at 19.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £915.50 for IG and $66.53 for Cactus. Over the past year, IG's prices ranged from £656.00 to £995.25, with a yearly change of 51.71%. Cactus's prices fluctuated between $37.58 and $69.77, with a yearly change of 85.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.