NextEra Energy vs IG Which Is More Lucrative?

NextEra Energy and IG stocks are two prominent entities in the investment world, each offering unique opportunities and benefits for investors. NextEra Energy is a leading clean energy company, specializing in renewable energy production and distribution. On the other hand, IG stocks are part of IG Group, a global financial services provider offering a wide range of trading opportunities in various markets. Both companies have their strengths and appeal to different types of investors seeking growth and stability in their portfolios.

NextEra Energy or IG?

When comparing NextEra Energy 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 NextEra Energy 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. NextEra Energy has a dividend yield of 3.33%, while IG has a dividend yield of 4.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%. 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 NextEra Energy P/E ratio at 22.42 and IG's P/E ratio at 6.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NextEra Energy P/B ratio is 3.11 while IG's P/B ratio is 1.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NextEra Energy has seen a 5-year revenue growth of 0.57%, while IG's is 0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NextEra Energy's ROE at 14.24% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.74 for NextEra Energy and £915.50 for IG. Over the past year, NextEra Energy's prices ranged from $53.81 to $86.10, with a yearly change of 60.01%. 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.