Telefonaktiebolaget LM Ericsson vs VirnetX Which Is More Reliable?

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company that has been a major player in the industry for decades. On the other hand, VirnetX is an American patent holding company known for its legal battles over intellectual property rights. Recently, these two companies have been in the spotlight due to ongoing litigation surrounding patent infringement allegations, which have had a significant impact on their respective stock prices. This ongoing legal battle has created uncertainty and volatility in the market for both Ericsson and VirnetX shareholders.

Telefonaktiebolaget LM Ericsson or VirnetX?

When comparing Telefonaktiebolaget LM Ericsson and VirnetX, 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 VirnetX.

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 VirnetX 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, VirnetX reports a 5-year dividend growth of 0.00% year and a payout ratio of -354.56%.

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 VirnetX's P/E ratio at -1.07. 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 VirnetX's P/B ratio is 0.44.

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 VirnetX'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 -1.44% and VirnetX's ROE at -36.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.11 for Telefonaktiebolaget LM Ericsson and $6.01 for VirnetX. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.56 to $8.62, with a yearly change of 89.04%. VirnetX's prices fluctuated between $3.55 and $9.44, with a yearly change of 165.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.