IPS vs IP Which Is More Lucrative?

IPS (individual patient stocks) and IP (index patient stocks) represent two different investment strategies in the stock market. IPS involves selecting individual stocks based on thorough research and analysis of specific companies, while IP involves investing in broader stock market indices to diversify the portfolio. Both strategies have their own advantages and drawbacks, with IPS offering the potential for higher returns but also higher risk, while IP provides more stability and less volatility. Investors should carefully consider their investment goals and risk tolerance before choosing between IPS and IP stocks.

IPS or IP?

When comparing IPS and IP, 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 IP.

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 1.47%, while IP 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, IP reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.34%.

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 IPS P/E ratio at 12.51 and IP's P/E ratio at -2.08. 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 2.86 while IP's P/B ratio is 0.43.

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 IP's is 0.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IPS's ROE at 24.70% and IP's ROE at -19.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2630.00 for IPS and £44.55 for IP. Over the past year, IPS's prices ranged from ¥1500.00 to ¥2777.00, with a yearly change of 85.13%. IP's prices fluctuated between £35.65 and £60.90, with a yearly change of 70.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.