IG vs Reach Which Is More Profitable?

IG and Reach stocks are two popular options for investors looking to diversify their portfolios. IG, also known as IG Markets, is a well-established online trading platform that offers a wide range of financial instruments, including stocks, indices, currencies, and cryptocurrencies. Reach stocks, on the other hand, are a newer and more innovative option that focuses on companies with high growth potential and disruptive technologies. Both options have their own unique features and benefits, making them appealing choices for investors with different risk appetites and investment goals.

IG or Reach?

When comparing IG and Reach, 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 Reach.

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 Reach has a dividend yield of 8.59%. 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, Reach reports a 5-year dividend growth of 4.38% year and a payout ratio of 55.90%.

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 Reach's P/E ratio at 6.49. 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 Reach's P/B ratio is 0.40.

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 Reach's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Reach's ROE at 6.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £960.00 for IG and £85.40 for Reach. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. Reach's prices fluctuated between £58.47 and £112.80, with a yearly change of 92.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.