Nokia vs Alphabet

Nokia and Alphabet are two tech giants that have been making waves in the stock market. Nokia, a Finnish telecommunications company, has a long history of innovation in the mobile phone industry. On the other hand, Alphabet, the parent company of Google, is known for its dominance in the online search market. Both companies have seen fluctuations in their stock prices in recent years, making them hot topics for investors looking to capitalize on the latest trends in technology.

Nokia or Alphabet?

When comparing Nokia and Alphabet, 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 Nokia and Alphabet.

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. Nokia has a dividend yield of 3.16%, while Alphabet has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nokia reports a 5-year dividend growth of 0.00% year and a payout ratio of 189.95%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%.

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 Nokia P/E ratio at 59.06 and Alphabet's P/E ratio at 23.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nokia P/B ratio is 1.07 while Alphabet's P/B ratio is 6.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nokia has seen a 5-year revenue growth of -0.02%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.80% and Alphabet's ROE at 30.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.38 for Nokia and $166.05 for Alphabet. Over the past year, Nokia's prices ranged from $2.94 to $4.52, with a yearly change of 53.74%. Alphabet's prices fluctuated between $121.46 and $193.31, with a yearly change of 59.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.