IG vs NextEra Energy Which Is More Lucrative?

Investing in stocks can be a risky venture, but choosing the right companies can lead to significant returns. Two companies that investors may consider are IG, a multinational financial services company, and NextEra Energy, a leading clean energy provider. IG offers stability and potential growth in the financial sector, while NextEra Energy appeals to those interested in sustainable energy solutions. Both stocks have their own unique opportunities and challenges, making them worth exploring for investors looking to diversify their portfolios.

IG or NextEra Energy?

When comparing IG and NextEra Energy, 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 NextEra Energy.

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 4.8%, while NextEra Energy has a dividend yield of 2.78%. 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, NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%.

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 6.39 and NextEra Energy's P/E ratio at 21.90. 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 1.94 while NextEra Energy's P/B ratio is 3.04.

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 NextEra Energy's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and NextEra Energy's ROE at 14.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £958.00 for IG and $73.35 for NextEra Energy. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. NextEra Energy's prices fluctuated between $53.95 and $86.10, with a yearly change of 59.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.