Nokia vs QUALCOMM Which Is a Better Investment?

Nokia and QUALCOMM are two prominent players in the telecommunications sector, each offering unique strengths and competitive advantages. Nokia, a Finnish multinational corporation, specializes in networking equipment and services, while QUALCOMM, an American semiconductor company, is known for its innovative technologies in wireless communication. Both companies have experienced fluctuations in stock prices due to market trends, technological advancements, and regulatory changes. Investors will need to carefully consider their financial performance, competitive positioning, and growth potential before deciding on investing in Nokia or QUALCOMM stocks.

Nokia or QUALCOMM ?

When comparing Nokia and QUALCOMM , 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 QUALCOMM .

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 3.23%, while QUALCOMM has a dividend yield of 2.11%. 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 173.43%. On the other hand, QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%.

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 56.21 and QUALCOMM 's P/E ratio at 17.43. 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 1.11 while QUALCOMM 's P/B ratio is 6.73.

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 QUALCOMM 's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.97% and QUALCOMM 's ROE at 41.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.41 for Nokia and $156.63 for QUALCOMM . Over the past year, Nokia's prices ranged from $3.20 to $4.95, with a yearly change of 54.69%. QUALCOMM 's prices fluctuated between $134.94 and $230.63, with a yearly change of 70.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.