Alphabet vs Nokia

Alphabet Inc., the parent company of Google, and Nokia Corporation are two major players in the technology sector with significant influence in the global stock market. Alphabet's stock has shown impressive growth over the years due to its dominant position in digital advertising and cloud computing. On the other hand, Nokia's stock has experienced volatility, with fluctuations in its performance as the company navigates the competitive telecommunications market. Investors are closely monitoring these two stocks to assess their potential for long-term growth and profitability.

Alphabet or Nokia?

When comparing Alphabet and Nokia, 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 Alphabet and Nokia.

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. Alphabet has a dividend yield of 0.36%, while Nokia has a dividend yield of 3.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%. On the other hand, Nokia reports a 5-year dividend growth of 0.00% year and a payout ratio of 189.95%.

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 Alphabet P/E ratio at 23.30 and Nokia's P/E ratio at 59.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 6.79 while Nokia's P/B ratio is 1.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and Nokia's ROE at 1.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.05 for Alphabet and $4.38 for Nokia. Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. Nokia's prices fluctuated between $2.94 and $4.52, with a yearly change of 53.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.