Sterling vs Interactive Brokers Which Outperforms?

Sterling and Interactive Brokers are two popular online brokerage platforms that offer a wide range of stock trading options for investors. Sterling is known for its user-friendly interface and robust research tools, making it an ideal choice for both new and experienced traders. On the other hand, Interactive Brokers is known for its competitive pricing and advanced trading features, making it a favorite among active traders. Both platforms have their own strengths and weaknesses, so it is important to carefully consider your trading goals and preferences before choosing between them.

Sterling or Interactive Brokers?

When comparing Sterling and Interactive Brokers, 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 Sterling and Interactive Brokers.

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. Sterling has a dividend yield of -%, while Interactive Brokers has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sterling reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Interactive Brokers reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.89%.

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 Sterling P/E ratio at -0.68 and Interactive Brokers's P/E ratio at 27.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sterling P/B ratio is 0.68 while Interactive Brokers's P/B ratio is 4.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sterling has seen a 5-year revenue growth of -0.36%, while Interactive Brokers's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sterling's ROE at -81.42% and Interactive Brokers's ROE at 18.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.08 for Sterling and $177.55 for Interactive Brokers. Over the past year, Sterling's prices ranged from HK$0.07 to HK$0.25, with a yearly change of 243.06%. Interactive Brokers's prices fluctuated between $78.93 and $193.42, with a yearly change of 145.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.