Nokia vs Amazon.com

Nokia and Amazon.com are two well-known companies in the technology sector with their stocks being closely watched by investors. Nokia, the Finnish telecommunications company, has a long-standing history in the industry but has faced challenges in recent years with the rise of competitors. On the other hand, Amazon.com, the e-commerce giant, has seen significant growth and dominance in the market, making their stock highly attractive to investors. Both stocks have their own unique strengths and weaknesses, making them intriguing options for investment.

Nokia or Amazon.com?

When comparing Nokia and Amazon.com, 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 Amazon.com.

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 Amazon.com has a dividend yield of -%. 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, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Amazon.com's P/E ratio at 44.14. 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 Amazon.com's P/B ratio is 8.29.

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 Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.80% and Amazon.com's ROE at 21.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.38 for Nokia and $184.58 for Amazon.com. Over the past year, Nokia's prices ranged from $2.94 to $4.52, with a yearly change of 53.74%. Amazon.com's prices fluctuated between $118.35 and $201.20, with a yearly change of 70.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.