Nokia vs Apple

Nokia and Apple are two of the most well-known technology companies in the world, both offering products that have revolutionized the way we communicate and interact with technology. Despite their differences in approach and product offerings, both companies are major players in the stock market, with investors closely monitoring their performance. This comparison of Nokia and Apple stocks will analyze their financial health, market positioning, and growth potential, providing insights into which company may be a better investment opportunity.

Nokia or Apple?

When comparing Nokia and Apple, 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 Apple.

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 Apple has a dividend yield of 0.42%. 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, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%.

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 Apple's P/E ratio at 35.06. 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 Apple's P/B ratio is 53.59.

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 Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.80% and Apple's ROE at 147.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.38 for Nokia and $232.37 for Apple. Over the past year, Nokia's prices ranged from $2.94 to $4.52, with a yearly change of 53.74%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.