Telefonaktiebolaget LM Ericsson vs GAN Which Is More Profitable?

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a prominent Swedish multinational telecommunications company. Its stock performance has garnered significant attention in comparison to GAN Limited, a leading provider of internet gaming software and services. Ericsson's stock has shown strength in the telecommunications sector, while GAN's stock has seen fluctuations based on the rapidly growing online gambling industry. Both companies operate in different sectors, making their stock performances unique and subject to different market dynamics.

Telefonaktiebolaget LM Ericsson or GAN?

When comparing Telefonaktiebolaget LM Ericsson and GAN, 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 GAN.

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 3.31%, while GAN has a dividend yield of -%. 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 -667.40%. On the other hand, GAN reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 -216.14 and GAN's P/E ratio at -6.28. 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 3.40 while GAN's P/B ratio is -14.38.

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 GAN's is 3.10%. 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 GAN's ROE at 179.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.11 for Telefonaktiebolaget LM Ericsson and $1.78 for GAN. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.56 to $8.62, with a yearly change of 89.04%. GAN's prices fluctuated between $1.17 and $1.85, with a yearly change of 58.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.