Telefonaktiebolaget LM Ericsson vs LVMH Which Is Superior?

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a leading Swedish multinational networking and telecommunications company. With a strong presence in the global market, Ericsson's stock has been a popular choice among investors seeking exposure to the technology sector. On the other hand, LVMH Moët Hennessy Louis Vuitton SE is a French multinational luxury goods conglomerate known for its iconic brands in fashion, cosmetics, and spirits. Both stocks offer investors a unique opportunity to diversify their portfolios and potentially achieve long-term growth.

Telefonaktiebolaget LM Ericsson or LVMH?

When comparing Telefonaktiebolaget LM Ericsson and LVMH, 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 LVMH.

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 3.3%, while LVMH has a dividend yield of 2.15%. 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, LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%.

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 -222.20 and LVMH's P/E ratio at 22.89. 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 3.50 while LVMH's P/B ratio is 4.93.

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 LVMH's is 0.85%. 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 LVMH's ROE at 22.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.25 for Telefonaktiebolaget LM Ericsson and $668.40 for LVMH. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.77 to $8.62, with a yearly change of 80.71%. LVMH's prices fluctuated between $598.42 and $958.69, with a yearly change of 60.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.