IG vs LB Which Is More Reliable?

When it comes to investing in the stock market, two popular choices among traders are IG Group Holdings and L Brands. IG Group Holdings is a global leader in online trading, offering a wide range of financial products including stocks, forex, and commodities. On the other hand, L Brands is a retail company known for its iconic brands like Victoria's Secret and Bath & Body Works. Both companies have their own unique strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios.

IG or LB?

When comparing IG and LB, 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 LB.

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 LB has a dividend yield of 3.1%. 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, LB reports a 5-year dividend growth of -5.65% year and a payout ratio of 115.05%.

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 LB's P/E ratio at 11.94. 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 LB's P/B ratio is 1.82.

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 LB's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and LB's ROE at 15.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £915.50 for IG and ¥19.36 for LB. Over the past year, IG's prices ranged from £656.00 to £995.25, with a yearly change of 51.71%. LB's prices fluctuated between ¥15.12 and ¥23.20, with a yearly change of 53.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.