Telefonaktiebolaget LM Ericsson vs Quarterhill

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company. The company has a long history of innovation and is a major player in the development of 5G technology. Quarterhill is a Canadian technology company that focuses on acquiring and managing technology companies. Investors looking to add telecommunications stocks to their portfolio may consider comparing Ericsson and Quarterhill to assess their growth potential, financial performance, and market position in the industry.

Telefonaktiebolaget LM Ericsson or Quarterhill?

When comparing Telefonaktiebolaget LM Ericsson and Quarterhill, 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 Quarterhill.

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 Quarterhill 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 -25.41%. On the other hand, Quarterhill reports a 5-year dividend growth of -20.40% year and a payout ratio of -0.19%.

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 Quarterhill's P/E ratio at -7.82. 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 Quarterhill's P/B ratio is 1.14.

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 Quarterhill's is 0.90%. 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 Quarterhill's ROE at -14.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.14 for Telefonaktiebolaget LM Ericsson and $1.33 for Quarterhill. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.33 to $8.62, with a yearly change of 99.07%. Quarterhill's prices fluctuated between $1.04 and $1.61, with a yearly change of 54.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.