LB vs IG Which Is a Better Investment?

LB vs IG stocks refer to the comparison between L Brands Inc. (LB) and The Interpublic Group of Companies Inc. (IG) in the stock market. LB is a retail company that owns popular brands such as Victoria's Secret and Bath & Body Works, while IG is a global advertising and marketing services company. Investors often analyze the financial performance, market trends, and growth potential of both companies to make informed investment decisions. Understanding the differences and similarities between LB and IG stocks is crucial for maximizing investment returns.

LB or IG?

When comparing LB and IG, 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 LB and IG.

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. LB has a dividend yield of 5.03%, while IG has a dividend yield of 4.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LB reports a 5-year dividend growth of -5.65% year and a payout ratio of 115.05%. On the other hand, IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%.

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 LB P/E ratio at 10.99 and IG's P/E ratio at 6.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LB P/B ratio is 1.68 while IG's P/B ratio is 1.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LB has seen a 5-year revenue growth of 1.15%, while IG's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LB's ROE at 15.54% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥17.82 for LB and £960.00 for IG. Over the past year, LB's prices ranged from ¥15.12 to ¥23.20, with a yearly change of 53.44%. IG's prices fluctuated between £671.00 and £995.25, with a yearly change of 48.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.