Nokia vs Telefonaktiebolaget LM Ericsson Which Outperforms?

Nokia and Telefonaktiebolaget LM Ericsson are two major players in the telecommunications industry, both known for their innovative technologies and products. Investors often compare the stocks of these two companies, as they compete for market share and aim to stay ahead in the rapidly evolving industry. Nokia has a strong global presence and a diverse product portfolio, while Ericsson is known for its focus on 5G technology and network solutions. Analyzing the performance of these stocks can provide valuable insights for investors looking to capitalize on the opportunities in the telecommunications sector.

Nokia or Telefonaktiebolaget LM Ericsson?

When comparing Nokia and Telefonaktiebolaget LM Ericsson, 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 Telefonaktiebolaget LM Ericsson.

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 3.28%, while Telefonaktiebolaget LM Ericsson has a dividend yield of 3.35%. 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, Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 9.81% year and a payout ratio of -667.40%.

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 55.83 and Telefonaktiebolaget LM Ericsson's P/E ratio at -221.45. 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 Telefonaktiebolaget LM Ericsson's P/B ratio is 3.49.

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 Telefonaktiebolaget LM Ericsson's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.97% and Telefonaktiebolaget LM Ericsson's ROE at -1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.41 for Nokia and $8.22 for Telefonaktiebolaget LM Ericsson. Over the past year, Nokia's prices ranged from $3.20 to $4.95, with a yearly change of 54.69%. Telefonaktiebolaget LM Ericsson's prices fluctuated between $4.77 and $8.62, with a yearly change of 80.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.