Elisa vs Delfi Which Should You Buy?

Elisa and Delfi are two leading telecommunications companies operating in Europe, each with their own unique strengths and attributes. Elisa, a Finnish company, boasts a strong presence in the Nordic region and has a reputation for innovative digital services. On the other hand, Delfi, a Spanish telecommunications company, has a solid foothold in the Iberian market and is known for its reliable infrastructure. Investors looking to diversify their portfolio may consider comparing the performance of Elisa and Delfi stocks to make informed investment decisions.

Elisa or Delfi?

When comparing Elisa and Delfi, 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 Elisa and Delfi.

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. Elisa has a dividend yield of 5.36%, while Delfi has a dividend yield of 5.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Elisa reports a 5-year dividend growth of 5.44% year and a payout ratio of 50.99%. On the other hand, Delfi reports a 5-year dividend growth of 10.54% year and a payout ratio of 64.61%.

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 Elisa P/E ratio at 18.25 and Delfi's P/E ratio at 9.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Elisa P/B ratio is 5.61 while Delfi's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Elisa has seen a 5-year revenue growth of 0.19%, while Delfi's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Elisa's ROE at 29.80% and Delfi's ROE at 15.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €41.96 for Elisa and S$0.81 for Delfi. Over the past year, Elisa's prices ranged from €40.18 to €49.08, with a yearly change of 22.15%. Delfi's prices fluctuated between S$0.77 and S$1.17, with a yearly change of 51.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.