Nokia vs Sony Which Outperforms?

Nokia and Sony are two well-known multinational companies operating in the technology and telecommunications industries. Both firms have a long history of producing innovative products and are considered leaders in their respective markets. Investors often compare the performance of Nokia and Sony stocks to determine which company may offer better returns. While Nokia has a strong presence in the mobile phone market, Sony is known for its diverse product offerings including gaming consoles, cameras, and entertainment services. This comparison of Nokia vs Sony stocks will delve into the financial performance, market trends, and future prospects of these two industry giants.

Nokia or Sony?

When comparing Nokia and Sony, 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 Sony.

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 3.4%, while Sony has a dividend yield of 0.58%. 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, Sony reports a 5-year dividend growth of 43.63% year and a payout ratio of 9.28%.

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 53.01 and Sony's P/E ratio at 16.97. 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 1.05 while Sony's P/B ratio is 2.47.

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 Sony's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.97% and Sony's ROE at 14.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.24 for Nokia and $20.90 for Sony. Over the past year, Nokia's prices ranged from $3.11 to $4.95, with a yearly change of 59.16%. Sony's prices fluctuated between $15.02 and $21.09, with a yearly change of 40.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.