Telefonaktiebolaget LM Ericsson vs Apple

Telefonaktiebolaget LM Ericsson (Ericsson) and Apple Inc. are both prominent companies in the technology industry, but they operate in different segments. Ericsson is a global telecommunications company known for its networking and infrastructure solutions, while Apple is a renowned consumer electronics company known for its innovative products. Both companies' stocks are widely traded on major stock exchanges, with investors closely monitoring their performance and growth potential in the ever-evolving tech sector. This article will explore the financial performance and stock trends of Ericsson and Apple, providing insights into their respective market positions and potential investment opportunities.

Telefonaktiebolaget LM Ericsson or Apple?

When comparing Telefonaktiebolaget LM Ericsson and Apple, 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 Apple.

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 Apple has a dividend yield of 0.42%. 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, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%.

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 Apple's P/E ratio at 35.06. 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 Apple's P/B ratio is 53.59.

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 Apple's is 0.82%. 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 Apple's ROE at 147.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.14 for Telefonaktiebolaget LM Ericsson and $232.37 for Apple. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.33 to $8.62, with a yearly change of 99.07%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.