Telefonaktiebolaget LM Ericsson vs Xerox Which Is More Attractive?

Telefonaktiebolaget LM Ericsson and Xerox are both well-known companies in the technology and communication sectors. Ericsson is a leading provider of telecommunications equipment and services, while Xerox is a multinational corporation specializing in document technology and business services. Both companies have a long-standing history of innovation and are recognized for their strong market presence. Investors looking to compare and potentially invest in these stocks will need to consider key financial indicators, market trends, and company performance to make informed decisions.

Telefonaktiebolaget LM Ericsson or Xerox?

When comparing Telefonaktiebolaget LM Ericsson and Xerox, 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 Xerox.

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 Xerox has a dividend yield of 11.39%. 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, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%.

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 Xerox's P/E ratio at -0.80. 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 Xerox's P/B ratio is 0.72.

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 Xerox's is 0.17%. 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 Xerox's ROE at -57.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.25 for Telefonaktiebolaget LM Ericsson and $8.54 for Xerox. Over the past year, Telefonaktiebolaget LM Ericsson's prices ranged from $4.77 to $8.62, with a yearly change of 80.71%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.