QUALCOMM vs Telefonaktiebolaget LM Ericsson Which Offers More Value?

QUALCOMM and Telefonaktiebolaget LM Ericsson are two well-known companies in the telecommunications industry. QUALCOMM, a leading provider of wireless technology solutions, has seen steady growth in its stocks over the years due to its innovative products and strong market presence. On the other hand, Ericsson, a Swedish multinational networking and telecommunications company, has also shown strong performance in the stock market with its diverse portfolio of offerings. Both companies are key players in the industry, making their stocks a popular choice among investors looking to capitalize on the growing demand for mobile technology.

QUALCOMM or Telefonaktiebolaget LM Ericsson?

When comparing QUALCOMM 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 QUALCOMM 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. QUALCOMM has a dividend yield of 1.96%, while Telefonaktiebolaget LM Ericsson has a dividend yield of 3.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 35.81%. On the other hand, Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 45.52% 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 QUALCOMM P/E ratio at 18.50 and Telefonaktiebolaget LM Ericsson's P/E ratio at -216.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. QUALCOMM P/B ratio is 7.14 while Telefonaktiebolaget LM Ericsson's P/B ratio is 3.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, QUALCOMM has seen a 5-year revenue growth of 1.06%, while Telefonaktiebolaget LM Ericsson's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 41.20% 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 $166.09 for QUALCOMM and $8.11 for Telefonaktiebolaget LM Ericsson. Over the past year, QUALCOMM 's prices ranged from $122.63 to $230.63, with a yearly change of 88.07%. Telefonaktiebolaget LM Ericsson's prices fluctuated between $4.56 and $8.62, with a yearly change of 89.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.