Telia vs Elisa Which Is a Smarter Choice?

Telia and Elisa are two prominent telecommunications companies based in the Nordic region, with Telia operating primarily in Sweden and Elisa in Finland. Both companies offer a range of services including mobile and fixed-line telecommunications, broadband, and digital services. Investors interested in the telecommunications sector may consider comparing the performance and financial health of these two companies. By analyzing factors such as market share, revenue growth, and profitability, investors can make informed decisions on whether to invest in Telia or Elisa stocks.

Telia or Elisa?

When comparing Telia and Elisa, 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 Telia and Elisa.

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. Telia has a dividend yield of 5.38%, while Elisa has a dividend yield of 5.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Telia reports a 5-year dividend growth of -12.75% year and a payout ratio of 248.13%. On the other hand, Elisa reports a 5-year dividend growth of 5.44% year and a payout ratio of 50.99%.

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 Telia P/E ratio at 25.17 and Elisa's P/E ratio at 18.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Telia P/B ratio is 2.24 while Elisa's P/B ratio is 5.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Telia has seen a 5-year revenue growth of 0.13%, while Elisa's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telia's ROE at 8.80% and Elisa's ROE at 29.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.50 for Telia and €41.56 for Elisa. Over the past year, Telia's prices ranged from $4.53 to $6.71, with a yearly change of 48.12%. Elisa's prices fluctuated between €40.18 and €49.08, with a yearly change of 22.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.