Step vs IG Which Is More Attractive?

When it comes to investing in the stock market, there are various options available to investors, including traditional brokerage accounts and newer, social trading platforms like Step and IG Stocks. Step offers commission-free trading and fractional shares, making it an attractive option for beginner investors. On the other hand, IG Stocks provides a more comprehensive range of trading options and research tools for more experienced traders. Understanding the differences between these two platforms can help investors make informed decisions about where to place their investments.

Step or IG?

When comparing Step 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 Step 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. Step has a dividend yield of 3.63%, while IG has a dividend yield of 4.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Step reports a 5-year dividend growth of 16.19% year and a payout ratio of 0.00%. 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 Step P/E ratio at 12.66 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. Step P/B ratio is 1.21 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, Step has seen a 5-year revenue growth of 0.31%, while IG's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Step's ROE at 9.59% and IG's ROE at 30.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2104.00 for Step and £960.00 for IG. Over the past year, Step's prices ranged from ¥1815.00 to ¥2137.00, with a yearly change of 17.74%. 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.