IGO vs Unite Which Performs Better?

IG Group Holdings plc (IG) and Unite Group plc (Unite) are two prominent companies in the financial and real estate sectors, respectively. IG is a global leader in online trading and provides clients with access to a wide range of financial markets. Unite is a UK-based property investment and management company specializing in student accommodation. Both companies have seen significant growth in recent years, but their stocks have different risk profiles and potential for returns. Let's analyze the key factors that investors should consider when deciding between investing in IGO vs Unite stocks.

IGO or Unite?

When comparing IGO and Unite, 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 IGO and Unite.

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. IGO has a dividend yield of 7.33%, while Unite has a dividend yield of 4.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IGO reports a 5-year dividend growth of 81.20% year and a payout ratio of 19203.57%. On the other hand, Unite reports a 5-year dividend growth of 6.11% year and a payout ratio of 43.01%.

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 IGO P/E ratio at 1363.87 and Unite's P/E ratio at 13.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IGO P/B ratio is 1.19 while Unite's P/B ratio is 0.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IGO has seen a 5-year revenue growth of 0.05%, while Unite's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IGO's ROE at 0.08% and Unite's ROE at 6.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$4.99 for IGO and £824.00 for Unite. Over the past year, IGO's prices ranged from A$4.71 to A$9.25, with a yearly change of 96.39%. Unite's prices fluctuated between £824.00 and £1063.00, with a yearly change of 29.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.