Nokia vs NVIDIA

Nokia and NVIDIA are two prominent technology companies known for their contributions to the mobile and computing industries. Both companies have seen fluctuations in their stock prices in recent years, with investors closely monitoring their performance. Nokia has a long history in telecommunications, while NVIDIA is a leader in graphics processing units and artificial intelligence technology. The comparison between Nokia and NVIDIA stocks can provide insights into the dynamics of the technology sector and offer valuable investment opportunities for stockholders.

Nokia or NVIDIA?

When comparing Nokia and NVIDIA, 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 NVIDIA.

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 NVIDIA has a dividend yield of 0.03%. 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, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

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 NVIDIA's P/E ratio at 61.02. 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 NVIDIA's P/B ratio is 55.62.

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 NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.80% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.38 for Nokia and $128.74 for NVIDIA. Over the past year, Nokia's prices ranged from $2.94 to $4.52, with a yearly change of 53.74%. NVIDIA's prices fluctuated between $39.23 and $140.76, with a yearly change of 258.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.