ERIC vs. NOK, UI, MSI, TYL, GDDY, STX, VRSN, IOT, SNAP, and PSTG
Should you be buying Telefonaktiebolaget LM Ericsson (publ) stock or one of its competitors? The main competitors of Telefonaktiebolaget LM Ericsson (publ) include Nokia Oyj (NOK), Ubiquiti (UI), Motorola Solutions (MSI), Tyler Technologies (TYL), GoDaddy (GDDY), Seagate Technology (STX), VeriSign (VRSN), Samsara (IOT), Snap (SNAP), and Pure Storage (PSTG). These companies are all part of the "computer and technology" sector.
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) and Nokia Oyj (NYSE:NOK) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, community ranking, analyst recommendations, media sentiment, earnings, profitability, institutional ownership, dividends and valuation.
Telefonaktiebolaget LM Ericsson (publ) pays an annual dividend of $0.17 per share and has a dividend yield of 3.3%. Nokia Oyj pays an annual dividend of $0.11 per share and has a dividend yield of 3.0%. Telefonaktiebolaget LM Ericsson (publ) pays out -24.3% of its earnings in the form of a dividend. Nokia Oyj pays out 68.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Telefonaktiebolaget LM Ericsson (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Nokia Oyj has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are held by institutional investors. Comparatively, 5.3% of Nokia Oyj shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
In the previous week, Nokia Oyj had 17 more articles in the media than Telefonaktiebolaget LM Ericsson (publ). MarketBeat recorded 20 mentions for Nokia Oyj and 3 mentions for Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ)'s average media sentiment score of 0.47 beat Nokia Oyj's score of 0.31 indicating that Telefonaktiebolaget LM Ericsson (publ) is being referred to more favorably in the media.
Nokia Oyj has a net margin of 3.90% compared to Telefonaktiebolaget LM Ericsson (publ)'s net margin of -9.75%. Telefonaktiebolaget LM Ericsson (publ)'s return on equity of 11.93% beat Nokia Oyj's return on equity.
Nokia Oyj has lower revenue, but higher earnings than Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ) is trading at a lower price-to-earnings ratio than Nokia Oyj, indicating that it is currently the more affordable of the two stocks.
Nokia Oyj received 346 more outperform votes than Telefonaktiebolaget LM Ericsson (publ) when rated by MarketBeat users. Likewise, 60.88% of users gave Nokia Oyj an outperform vote while only 57.77% of users gave Telefonaktiebolaget LM Ericsson (publ) an outperform vote.
Telefonaktiebolaget LM Ericsson (publ) currently has a consensus price target of $5.58, suggesting a potential upside of 9.84%. Nokia Oyj has a consensus price target of $4.42, suggesting a potential upside of 20.46%. Given Nokia Oyj's stronger consensus rating and higher possible upside, analysts clearly believe Nokia Oyj is more favorable than Telefonaktiebolaget LM Ericsson (publ).
Summary
Nokia Oyj beats Telefonaktiebolaget LM Ericsson (publ) on 13 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ERIC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Telefonaktiebolaget LM Ericsson (publ) Competitors List
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