IIFL Securities vs IIFL Finance Which Is More Profitable?

IIFL Securities and IIFL Finance are two prominent players in the Indian financial services industry, both operating under the IIFL Group umbrella. While IIFL Securities is primarily focused on providing brokerage and wealth management services, IIFL Finance is renowned for its lending and investment activities. Investors often compare the performance of these two stocks as they represent different segments of the financial market. Understanding the strengths and weaknesses of each company can help investors make informed decisions about their investment portfolios.

IIFL Securities or IIFL Finance?

When comparing IIFL Securities and IIFL Finance, 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 IIFL Securities and IIFL Finance.

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. IIFL Securities has a dividend yield of 0.9%, while IIFL Finance has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IIFL Securities reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IIFL Finance reports a 5-year dividend growth of -4.36% year and a payout ratio of 0.00%.

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 IIFL Securities P/E ratio at 14.25 and IIFL Finance's P/E ratio at 18.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IIFL Securities P/B ratio is 4.60 while IIFL Finance's P/B ratio is 1.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IIFL Securities has seen a 5-year revenue growth of 1.85%, while IIFL Finance's is 1.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IIFL Securities's ROE at 39.14% and IIFL Finance's ROE at 8.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹321.10 for IIFL Securities and ₹431.00 for IIFL Finance. Over the past year, IIFL Securities's prices ranged from ₹108.00 to ₹448.95, with a yearly change of 315.69%. IIFL Finance's prices fluctuated between ₹313.25 and ₹672.95, with a yearly change of 114.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.