Comparing Nokia (NYSE:NOK) & Its Peers

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

Profitability

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This table compares Nokia and its peers’ 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 -214.13% -27.92% -14.83%

Analyst Recommendations

This is a summary of current ratings and target prices for Nokia and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nokia 1 9 6 0 2.31
Nokia Competitors 282 1295 1812 100 2.50

Nokia presently has a consensus price target of $5.54, indicating a potential downside of 5.32%. As a group, “Radio & t.v. communications equipment” companies have a potential upside of 12.36%. Given Nokia’s peers stronger consensus rating and higher possible upside, analysts clearly believe Nokia has less favorable growth aspects than its peers.

Dividends

Nokia pays an annual dividend of $0.13 per share and has a dividend yield of 2.2%. 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 2.0% and pay out 46.1% of their earnings in the form of a dividend. Nokia is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

6.7% of Nokia shares are held by institutional investors. Comparatively, 42.9% 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 company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Nokia and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nokia $26.15 billion -$1.69 billion 15.81
Nokia Competitors $3.90 billion $104.43 million 20.71

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

Risk & Volatility

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

Summary

Nokia peers beat Nokia on 8 of the 15 factors compared.

About Nokia

Nokia Corporation engages in the network and technology businesses worldwide. The company operates through four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies. It provides mobile networking solutions, including hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals. It also offers fixed networking solutions, such as copper based solutions; fiber-to-the-home solutions, including Ethernet point-to-point, gigabit passive optical networks, EPON, and 10 gigabit next generation fiber technologies; fiber access products, solutions, and services; and public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, the company provides network implementation, care, and professional services for mobile networks; and managed services, such as network and service management, build-operate-transfer model, hosting, analytics, Internet of Things (IoT), cloud, and security operation services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services; and network architecture, integration, customization, and migration services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation has a collaboration agreement with Filtronic. The company was founded in 1865 and is headquartered in Espoo, Finland.

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