Apple vs Telefonaktiebolaget LM Ericsson

Apple Inc. and Telefonaktiebolaget LM Ericsson are two prominent companies in the technology industry with a significant presence in the global market. Both companies have established themselves as leaders in the field of telecommunications, with a strong focus on innovation and cutting-edge technology. Investors closely follow the stocks of these companies, as they offer a unique opportunity to capitalize on the growth and potential of the tech sector. Understanding the performance and dynamics of Apple vs Telefonaktiebolaget LM Ericsson stocks is crucial for investors looking to make informed decisions in the market.

Apple or Telefonaktiebolaget LM Ericsson?

When comparing Apple 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 Apple 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. Apple has a dividend yield of 0.42%, while Telefonaktiebolaget LM Ericsson has a dividend yield of 3.05%. 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, Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 45.52% year and a payout ratio of -25.41%.

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 Telefonaktiebolaget LM Ericsson's P/E ratio at -8.26. 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 Telefonaktiebolaget LM Ericsson's P/B ratio is 3.53.

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 Telefonaktiebolaget LM Ericsson's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Telefonaktiebolaget LM Ericsson's ROE at -35.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $8.14 for Telefonaktiebolaget LM Ericsson. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Telefonaktiebolaget LM Ericsson's prices fluctuated between $4.33 and $8.62, with a yearly change of 99.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.