Telia vs Tele2 Which Is More Promising?

Telia and Tele2 are two prominent telecom companies based in Sweden, each offering a range of services in the telecommunications industry. Both companies have established themselves as key players in the market, but their stock performances differ. Telia has a long-standing history and a strong market presence, while Tele2 is known for its innovative and customer-centric approach. Investors interested in telecom industry stocks may find it insightful to compare and analyze the performance of Telia and Tele2 stocks.

Telia or Tele2?

When comparing Telia and Tele2, 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 Tele2.

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 5.3%, while Tele2 has a dividend yield of 6.37%. 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, Tele2 reports a 5-year dividend growth of 14.73% year and a payout ratio of 123.60%.

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 25.52 and Tele2's P/E ratio at 20.38. 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 2.27 while Tele2's P/B ratio is 3.72.

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 Tele2's is 0.87%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telia's ROE at 8.80% and Tele2's ROE at 17.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.60 for Telia and $5.15 for Tele2. Over the past year, Telia's prices ranged from $4.53 to $6.71, with a yearly change of 48.12%. Tele2's prices fluctuated between $3.82 and $5.78, with a yearly change of 51.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.