Telia vs Telenor Which Performs Better?

Telia and Telenor are two of the largest telecommunications companies in the Nordic region, with a significant presence in the Scandinavian market. Both companies offer a range of services including mobile and fixed-line telephony, broadband, and television. Investors closely monitor the performance of Telia and Telenor stocks, as they are key players in the telecommunications industry. The stocks of these companies are influenced by various factors such as market trends, regulatory changes, and technological advancements. This comparison will analyze the performance and potential growth prospects of Telia and Telenor stocks.

Telia or Telenor?

When comparing Telia and Telenor, 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 Telenor.

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 Telenor has a dividend yield of 7.88%. 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, Telenor reports a 5-year dividend growth of -10.21% year and a payout ratio of 134.37%.

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 Telenor's P/E ratio at 17.69. 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 Telenor's P/B ratio is 2.30.

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 Telenor's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Telia's ROE at 8.80% and Telenor's ROE at 13.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.50 for Telia and $11.36 for Telenor. Over the past year, Telia's prices ranged from $4.53 to $6.71, with a yearly change of 48.12%. Telenor's prices fluctuated between $10.63 and $13.12, with a yearly change of 23.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.