Telefonaktiebolaget LM Ericsson vs Altria

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company that specializes in the development and provision of telecommunications equipment and services. On the other hand, Altria Group, formerly known as Philip Morris Companies Inc., is an American corporation primarily known for its involvement in the tobacco and alcohol industries. Both companies are publicly traded and have seen fluctuations in their stock prices over the years, making them interesting options for investors to consider.

Telefonaktiebolaget LM Ericsson or Altria?

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

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. Telefonaktiebolaget LM Ericsson has a dividend yield of 3.05%, while Altria has a dividend yield of 9.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 45.52% year and a payout ratio of -25.41%. On the other hand, Altria reports a 5-year dividend growth of 5.06% year and a payout ratio of 67.28%.

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 Telefonaktiebolaget LM Ericsson P/E ratio at -8.26 and Altria's P/E ratio at 8.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Telefonaktiebolaget LM Ericsson P/B ratio is 3.53 while Altria's P/B ratio is -28.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Telefonaktiebolaget LM Ericsson has seen a 5-year revenue growth of 0.23%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telefonaktiebolaget LM Ericsson's ROE at -35.99% and Altria's ROE at -269.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.14 for Telefonaktiebolaget LM Ericsson and $49.73 for Altria. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.33 to $8.62, with a yearly change of 99.07%. Altria's prices fluctuated between $39.07 and $54.95, with a yearly change of 40.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.