Nokia vs WPP Which Should You Buy?

Nokia and WPP are two well-known companies in the technology and advertising industries respectively. Nokia, a Finnish telecommunications equipment provider, has been a dominant player in the mobile phone market for years. On the other hand, WPP, a British multinational advertising and public relations company, has a strong presence in the global advertising industry. Both companies have seen fluctuations in their stock prices due to market conditions and industry developments, making them interesting options for investors to compare and analyze.

Nokia or WPP?

When comparing Nokia and WPP, 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 WPP.

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 WPP has a dividend yield of 3.55%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 WPP's P/E ratio at 228.76. 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 WPP's P/B ratio is 13.31.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nokia's ROE at 1.97% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.24 for Nokia and $54.84 for WPP. Over the past year, Nokia's prices ranged from $3.11 to $4.95, with a yearly change of 59.16%. WPP's prices fluctuated between $43.02 and $55.74, with a yearly change of 29.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.