Telenor vs Telia Which Outperforms?

Telenor and Telia are two leading telecommunications companies in the Nordic region, both listed on stock exchanges. Telenor, based in Norway, has a strong presence in Scandinavia and Asia, while Telia, headquartered in Sweden, operates primarily in the Nordic and Baltic countries. Investors often compare the two companies' stock performance, considering factors such as revenue growth, market share, and regulatory developments in the telecommunications industry. Understanding the dynamics of Telenor vs Telia stocks can provide valuable insights for investors looking to capitalize on opportunities in the telecom sector.

Telenor or Telia?

When comparing Telenor and Telia, 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 Telenor and Telia.

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. Telenor has a dividend yield of 8.01%, while Telia has a dividend yield of 5.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Telenor reports a 5-year dividend growth of -10.21% year and a payout ratio of 134.37%. On the other hand, Telia reports a 5-year dividend growth of -12.75% year and a payout ratio of 248.13%.

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 Telenor P/E ratio at 17.39 and Telia's P/E ratio at 25.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Telenor P/B ratio is 2.26 while Telia's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Telenor has seen a 5-year revenue growth of -0.23%, while Telia's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telenor's ROE at 13.72% and Telia's ROE at 8.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.19 for Telenor and $5.54 for Telia. Over the past year, Telenor's prices ranged from $10.63 to $13.12, with a yearly change of 23.42%. Telia's prices fluctuated between $4.53 and $6.71, with a yearly change of 48.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.