IPS vs IES Which Is Stronger?

Investment in stocks can be a lucrative endeavor, but it's important to understand the difference between IPS (Individual Personal Stocks) and IES (Index-based Exchange Traded Funds) before diving in. IPS stocks are individual companies that investors can buy shares in, allowing for potential high returns but also high risks. On the other hand, IES stocks track a broader market index and offer more diversified exposure to the market. Each type of stock has its own set of advantages and disadvantages, making it crucial for investors to carefully consider their goals and risk tolerance before making a decision.

IPS or IES?

When comparing IPS and IES, 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 IPS and IES.

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. IPS has a dividend yield of 1.49%, while IES has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IPS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IES reports a 5-year dividend growth of 0.00% 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 IPS P/E ratio at 12.02 and IES's P/E ratio at 26.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IPS P/B ratio is 2.77 while IES's P/B ratio is 9.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IPS has seen a 5-year revenue growth of 1.39%, while IES's is 1.83%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IPS's ROE at 24.70% and IES's ROE at 37.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2560.00 for IPS and $245.42 for IES. Over the past year, IPS's prices ranged from ¥1500.00 to ¥2777.00, with a yearly change of 85.13%. IES's prices fluctuated between $65.14 and $297.07, with a yearly change of 356.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.