Netflix vs Nokia

Netflix and Nokia are two giants in the tech and entertainment industry, both offering innovative products and services to customers around the world. While Netflix is known for its streaming platform and original content, Nokia is a leader in telecommunications equipment and services. Investing in either company's stocks can be a strategic financial decision, but understanding the key differences and market trends between Netflix and Nokia can help investors make informed choices for maximizing returns in their portfolios.

Netflix or Nokia?

When comparing Netflix 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 Netflix 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. Netflix has a dividend yield of -%, while Nokia has a dividend yield of 3.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Netflix P/E ratio at 42.79 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. Netflix P/B ratio is 13.73 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, Netflix has seen a 5-year revenue growth of 1.11%, while Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 32.93% and Nokia's ROE at 1.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $699.78 for Netflix and $4.38 for Nokia. Over the past year, Netflix's prices ranged from $344.73 to $736.00, with a yearly change of 113.50%. 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.