LS vs IG Which Is a Smarter Choice?

LS and IG are two popular stocks traded on the stock market. LS, known for its stable and consistent performance, is a favorite among long-term investors seeking steady growth. On the other hand, IG is a more volatile stock, with the potential for high returns but also higher risks. Both stocks have their own strengths and weaknesses, making them attractive options for different types of investors. In this comparison, we will take a closer look at the key differences between LS and IG stocks to help you make an informed investment decision.

LS or IG?

When comparing LS 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 LS 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. LS has a dividend yield of 1.6%, while IG has a dividend yield of 5.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LS reports a 5-year dividend growth of 5.06% year and a payout ratio of 21.10%. 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 LS P/E ratio at 5.64 and IG's P/E ratio at 6.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LS P/B ratio is 0.56 while IG's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LS has seen a 5-year revenue growth of 1.45%, while IG's is 0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LS's ROE at 10.46% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩99400.00 for LS and £913.00 for IG. Over the past year, LS's prices ranged from ₩75400.00 to ₩194800.00, with a yearly change of 158.36%. IG's prices fluctuated between £656.00 and £995.25, with a yearly change of 51.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.