Nokia (NOK) versus Its Peers Financial Survey

Nokia (NYSE: NOK) is one of 42 public companies in the “Radio & t.v. communications equipment” industry, but how does it weigh in compared to its rivals? We will compare Nokia to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Volatility and Risk

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Nokia has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Nokia’s rivals have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Nokia and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nokia -6.37% 10.80% 4.54%
Nokia Competitors -215.91% -27.09% -14.93%

Dividends

Nokia pays an annual dividend of $0.13 per share and has a dividend yield of 2.4%. Nokia pays out 35.1% of its earnings in the form of a dividend. As a group, “Radio & t.v. communications equipment” companies pay a dividend yield of 2.1% and pay out 46.2% of their earnings in the form of a dividend. Nokia is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Nokia and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nokia 1 9 4 0 2.21
Nokia Competitors 281 1281 1802 99 2.50

Nokia presently has a consensus price target of $5.54, indicating a potential upside of 2.76%. As a group, “Radio & t.v. communications equipment” companies have a potential upside of 17.96%. Given Nokia’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nokia has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Nokia and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nokia $26.15 billion -$1.69 billion 14.57
Nokia Competitors $3.90 billion $104.43 million 14.18

Nokia has higher revenue, but lower earnings than its rivals. Nokia is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

6.6% of Nokia shares are held by institutional investors. Comparatively, 44.8% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 16.8% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Nokia beats its rivals on 8 of the 15 factors compared.

About Nokia

Nokia Corporation, together with its subsidiaries, provides network infrastructure and related services worldwide. The company operates through three segments: Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. It offers mobile networking solutions, such as hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals; radio access network solutions; Internet protocol multimedia subsystem/voice over LTE, subscriber data management and other virtualized software infrastructure solutions; backhaul solutions; and network planning, implementation, operations, and maintenance solutions. The company also provides fixed networking solutions, including copper based solutions, such as VDSL2 Vectoring, Vplus, and G.fast; fiber-to-the-home solutions, such as Ethernet point-to-point, gigabit passive optical networks (GPON), EPON, and 10 gigabit next generation fiber technologies, as well as fiber access technologies; digital home devices; and copper and fiber broadband evolution, public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, it offers IP/optical networking solutions, such as IP routing and optical transport systems, software, and services; and packet-optimized and optical transport solutions. Further, the company provides software solutions, including customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, Internet of Things, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.

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