Telefonaktiebolaget LM Ericsson vs Toshiba Which Should You Buy?

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company, while Toshiba Corporation is a Japanese multinational conglomerate. Both companies are publicly traded on major stock exchanges. Ericsson has a strong presence in the telecommunications industry, providing infrastructure, software, and services globally. Toshiba, on the other hand, has diverse business interests, including electronics, semiconductors, and energy. Investors interested in the technology sector may consider evaluating the performance and potential growth of these stocks.

Telefonaktiebolaget LM Ericsson or Toshiba?

When comparing Telefonaktiebolaget LM Ericsson and Toshiba, 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 Toshiba.

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 Toshiba 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, Toshiba reports a 5-year dividend growth of 0.00% year and a payout ratio of -12.41%.

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 Toshiba's P/E ratio at -18.10. 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 Toshiba's P/B ratio is 0.75.

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 Toshiba's is -1.00%. 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 Toshiba's ROE at -16.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.11 for Telefonaktiebolaget LM Ericsson and $14.81 for Toshiba. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.56 to $8.62, with a yearly change of 89.04%. Toshiba's prices fluctuated between $14.25 and $16.75, with a yearly change of 17.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.