Amazon.com vs Nokia Which Is More Reliable?

Amazon.com and Nokia stocks have been two prominent players in the global market, with both companies experiencing fluctuations in their stock prices in recent years. Amazon.com, as an e-commerce giant, has seen steady growth due to its diverse product offerings and strong customer base. On the other hand, Nokia, a telecommunications company, has faced challenges in maintaining its market share amidst stiff competition. Investors are constantly comparing the performance of these two stocks to make informed decisions about their investments.

Amazon.com or Nokia?

When comparing Amazon.com 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 Amazon.com 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. Amazon.com has a dividend yield of -%, while Nokia has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nokia reports a 5-year dividend growth of 0.00% year and a payout ratio of 173.43%.

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 Amazon.com P/E ratio at 47.90 and Nokia's P/E ratio at 56.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.22 while Nokia's P/B ratio is 1.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Nokia's ROE at 1.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $4.41 for Nokia. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Nokia's prices fluctuated between $3.20 and $4.95, with a yearly change of 54.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.