Elisa vs Telia

Elisa and Telia are two telecommunications companies that are well-known in the European market. Both companies offer a wide range of services, including mobile and landline communications, internet and television services. Investors often compare the performance of Elisa and Telia stocks to determine which company may be a better investment opportunity. However, the two companies have different market strategies and financial performance, which make them unique in their own ways. Let's take a closer look at the stocks of Elisa and Telia to see how they stack up against each other.

Elisa or Telia?

When comparing Elisa and Telia, 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 Telia.

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 2.35%, while Telia has a dividend yield of 5.93%. 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 51.10%. On the other hand, Telia reports a 5-year dividend growth of -16.23% year and a payout ratio of 232.99%.

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 20.98 and Telia's P/E ratio at 60.00. 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 7.06 while Telia's P/B ratio is 4.78.

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 Telia's is -0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Elisa's ROE at 29.88% and Telia's ROE at 7.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €48.08 for Elisa and $6.18 for Telia. Over the past year, Elisa's prices ranged from €39.41 to €49.08, with a yearly change of 24.54%. Telia's prices fluctuated between $4.11 and $6.71, with a yearly change of 63.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.