Kia vs Nokia Which Is More Promising?

Kia and Nokia are two well-known companies in different industries, but they both have stocks that are heavily traded in the financial markets. Kia is a South Korean automotive giant known for its stylish and affordable vehicles, while Nokia is a Finnish telecommunications company that has been a pioneer in mobile technology. Both companies have faced challenges in recent years, but their stocks continue to attract attention from investors looking for potential growth opportunities. Let's dive deeper into the performance and prospects of Kia vs Nokia stocks.

Kia or Nokia?

When comparing Kia 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 Kia 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. Kia has a dividend yield of 6.0%, while Nokia has a dividend yield of 3.61%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kia reports a 5-year dividend growth of 0.00% year and a payout ratio of 22.74%. On the other hand, Nokia reports a 5-year dividend growth of 0.00% year and a payout ratio of 173.43%.

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 Kia P/E ratio at 3.86 and Nokia's P/E ratio at 56.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kia P/B ratio is 0.73 while Nokia's P/B ratio is 1.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kia has seen a 5-year revenue growth of 0.87%, while Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kia's ROE at 20.32% and Nokia's ROE at 1.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩92800.00 for Kia and $4.54 for Nokia. Over the past year, Kia's prices ranged from ₩77300.00 to ₩135000.00, with a yearly change of 74.64%. Nokia's prices fluctuated between $2.94 and $4.95, with a yearly change of 68.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.