Telefonaktiebolaget LM Ericsson vs Coca-Cola

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company, while Coca-Cola is a well-known American multinational beverage corporation. Both companies are publicly traded stocks, which are popular among investors. Ericsson operates in the technology sector, providing solutions for communication networks, while Coca-Cola dominates the beverage market with its wide range of products. Investors often compare and analyze the performance of these two stocks to make informed investment decisions.

Telefonaktiebolaget LM Ericsson or Coca-Cola?

When comparing Telefonaktiebolaget LM Ericsson and Coca-Cola, 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 Coca-Cola.

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 Coca-Cola has a dividend yield of 3.41%. 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, Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 75.57%.

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 Coca-Cola's P/E ratio at 28.46. 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 Coca-Cola's P/B ratio is 11.72.

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 Coca-Cola's is 0.31%. 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 Coca-Cola's ROE at 40.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.14 for Telefonaktiebolaget LM Ericsson and $70.16 for Coca-Cola. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.33 to $8.62, with a yearly change of 99.07%. Coca-Cola's prices fluctuated between $53.21 and $73.53, with a yearly change of 38.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.