Telefonaktiebolaget LM Ericsson vs QUALCOMM Which Offers More Value?

Telefonaktiebolaget LM Ericsson and QUALCOMM are two leading companies in the telecommunications sector that have been competing for market share for years. Ericsson, a Swedish company, specializes in providing telecommunication equipment and services, while QUALCOMM, an American multinational corporation, is known for developing and selling wireless technology. Both companies have experienced fluctuations in their stock prices due to changes in the industry landscape and technological advancements. Investors closely monitor their performance to make informed decisions about trading their stocks.

Telefonaktiebolaget LM Ericsson or QUALCOMM ?

When comparing Telefonaktiebolaget LM Ericsson and QUALCOMM , 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 QUALCOMM .

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 QUALCOMM has a dividend yield of 2.11%. 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, QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%.

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 -222.39 and QUALCOMM 's P/E ratio at 17.43. 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 QUALCOMM 's P/B ratio is 6.73.

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 QUALCOMM 's is 1.06%. 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 QUALCOMM 's ROE at 41.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.25 for Telefonaktiebolaget LM Ericsson and $156.63 for QUALCOMM . Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.77 to $8.62, with a yearly change of 80.71%. QUALCOMM 's prices fluctuated between $134.94 and $230.63, with a yearly change of 70.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.