NSE vs Nasdaq Which Is Superior?

The National Stock Exchange (NSE) and Nasdaq are two major stock exchanges that play a significant role in the global financial markets. NSE is the largest stock exchange in India, while Nasdaq is a leading stock exchange in the United States. Both exchanges offer a platform for investors to buy and sell stocks, but there are key differences between the two in terms of market capitalization, trading volume, types of companies listed, and regulations. Understanding these differences can help investors make informed decisions when trading on either exchange.

NSE or Nasdaq?

When comparing NSE and Nasdaq, 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 NSE and Nasdaq.

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. NSE has a dividend yield of 0.84%, while Nasdaq has a dividend yield of 1.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NSE reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.12%. On the other hand, Nasdaq reports a 5-year dividend growth of -12.74% year and a payout ratio of 55.27%.

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 NSE P/E ratio at 20.30 and Nasdaq's P/E ratio at 47.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NSE P/B ratio is 2.57 while Nasdaq's P/B ratio is 4.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NSE has seen a 5-year revenue growth of 0.14%, while Nasdaq's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NSE's ROE at 12.98% and Nasdaq's ROE at 8.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €28.60 for NSE and $78.78 for Nasdaq. Over the past year, NSE's prices ranged from €19.40 to €31.00, with a yearly change of 59.79%. Nasdaq's prices fluctuated between $51.72 and $80.41, with a yearly change of 55.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.