Amdocs vs Telefonaktiebolaget LM Ericsson Which Performs Better?

Amdocs and Telefonaktiebolaget LM Ericsson are two prominent companies in the telecommunications industry, each showcasing their own strengths and weaknesses in the stock market. Amdocs, a leader in software and services for communications and media companies, has shown steady growth and stability in recent years. On the other hand, Telefonaktiebolaget LM Ericsson, a global provider of communications technology and services, has faced challenges in the competitive market. Investors should carefully assess the performance and outlook of both stocks before making investment decisions.

Amdocs or Telefonaktiebolaget LM Ericsson?

When comparing Amdocs and Telefonaktiebolaget LM Ericsson, 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 Amdocs and Telefonaktiebolaget LM Ericsson.

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. Amdocs has a dividend yield of 2.14%, while Telefonaktiebolaget LM Ericsson has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%. On the other hand, Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 9.81% year and a payout ratio of -667.40%.

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 Amdocs P/E ratio at 19.73 and Telefonaktiebolaget LM Ericsson's P/E ratio at -222.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amdocs P/B ratio is 2.86 while Telefonaktiebolaget LM Ericsson's P/B ratio is 3.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amdocs has seen a 5-year revenue growth of 0.49%, while Telefonaktiebolaget LM Ericsson's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amdocs's ROE at 14.40% and Telefonaktiebolaget LM Ericsson's ROE at -1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.06 for Amdocs and $8.25 for Telefonaktiebolaget LM Ericsson. Over the past year, Amdocs's prices ranged from $74.41 to $94.04, with a yearly change of 26.38%. Telefonaktiebolaget LM Ericsson's prices fluctuated between $4.77 and $8.62, with a yearly change of 80.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.