IG vs Personal Which Performs Better?

Investing in individual stocks can be a lucrative way to build wealth, but it can also be risky and time-consuming. Instagram (IG) has become a popular platform for amateur investors to share tips and advice on trading stocks. However, it is important to differentiate between personal stock picks and those recommended by influencers on social media. It is crucial to do thorough research and consider the long-term implications before making any investment decisions. This article will explore the benefits and drawbacks of investing in individual stocks through IG versus personal research.

IG or Personal?

When comparing IG and Personal, 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 Personal.

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 4.78%, while Personal has a dividend yield of 6.22%. 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, Personal reports a 5-year dividend growth of -13.48% year and a payout ratio of 79.34%.

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 6.43 and Personal's P/E ratio at 13.47. 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 1.95 while Personal's P/B ratio is 1.94.

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 Personal's is -0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Personal's ROE at 14.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £960.00 for IG and £196.04 for Personal. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. Personal's prices fluctuated between £152.00 and £210.00, with a yearly change of 38.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.