Apple vs Nokia

Apple and Nokia are two technology giants that have long been players in the stock market. Apple, known for its innovative products like the iPhone and MacBook, has seen its stock price rise steadily over the years. On the other hand, Nokia, once a dominant player in the mobile phone industry, has struggled to keep up with changing technological trends. Investors often compare the two companies' stocks to decide which one offers the best long-term growth potential.

Apple or Nokia?

When comparing Apple 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 Apple 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. Apple has a dividend yield of 0.42%, while Nokia has a dividend yield of 3.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%. 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 Apple P/E ratio at 35.06 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. Apple P/B ratio is 53.59 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, Apple has seen a 5-year revenue growth of 0.82%, while Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Nokia's ROE at 1.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $4.38 for Nokia. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. 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.