Telefonaktiebolaget LM Ericsson vs Amdocs Which Is More Attractive?

Telefonaktiebolaget LM Ericsson (Ericsson) and Amdocs are two leading companies in the telecommunications industry. Ericsson is a Swedish multinational networking and telecommunications company, specializing in providing solutions and services to telecom operators worldwide. On the other hand, Amdocs is a software and services provider for communications, media, and financial services companies. Both companies have been actively traded on the stock market, attracting investors with their strong performance and potential for growth in the ever-evolving telecommunications sector.

Telefonaktiebolaget LM Ericsson or Amdocs?

When comparing Telefonaktiebolaget LM Ericsson and Amdocs, 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 Amdocs.

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 3.35%, while Amdocs has a dividend yield of 2.12%. 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 9.81% year and a payout ratio of -667.40%. On the other hand, Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%.

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 -221.45 and Amdocs's P/E ratio at 19.99. 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 3.49 while Amdocs's P/B ratio is 2.90.

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 Amdocs's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telefonaktiebolaget LM Ericsson's ROE at -1.44% and Amdocs's ROE at 14.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.22 for Telefonaktiebolaget LM Ericsson and $86.84 for Amdocs. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.77 to $8.62, with a yearly change of 80.71%. Amdocs's prices fluctuated between $74.41 and $94.04, with a yearly change of 26.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.