IG vs Hargreaves Lansdown Which Is a Smarter Choice?

Investing in stocks can be a lucrative way to grow your wealth, and there are many platforms available for buying and selling stocks. Two popular options are IG and Hargreaves Lansdown. IG offers a user-friendly online trading platform with a wide range of stocks and competitive fees. On the other hand, Hargreaves Lansdown is known for its research and analysis tools, as well as customer service. Both platforms have their own strengths and weaknesses, so it's important to consider your own investing goals and preferences when choosing between them.

IG or Hargreaves Lansdown?

When comparing IG and Hargreaves Lansdown, 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 Hargreaves Lansdown.

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 4.91%, while Hargreaves Lansdown has a dividend yield of 3.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IG reports a 5-year dividend growth of -8.85% year and a payout ratio of 31.14%. On the other hand, Hargreaves Lansdown reports a 5-year dividend growth of 1.52% year and a payout ratio of 31.52%.

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 6.29 and Hargreaves Lansdown's P/E ratio at 8.25. 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 1.91 while Hargreaves Lansdown's P/B ratio is 6.39.

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 0.85%, while Hargreaves Lansdown's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Hargreaves Lansdown's ROE at 82.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £935.50 for IG and $14.12 for Hargreaves Lansdown. Over the past year, IG's prices ranged from £700.00 to £1106.00, with a yearly change of 58.00%. Hargreaves Lansdown's prices fluctuated between $8.89 and $15.13, with a yearly change of 70.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.