ERIC vs. MSI, NOK, UI, VSAT, HLIT, PL, AVNW, COMM, GILT, and CRNT
Should you be buying Telefonaktiebolaget LM Ericsson (publ) stock or one of its competitors? The main competitors of Telefonaktiebolaget LM Ericsson (publ) include Motorola Solutions (MSI), Nokia Oyj (NOK), Ubiquiti (UI), Viasat (VSAT), Harmonic (HLIT), Planet Labs PBC (PL), Aviat Networks (AVNW), CommScope (COMM), Gilat Satellite Networks (GILT), and Ceragon Networks (CRNT). These companies are all part of the "radio & t.v. communications equipment" industry.
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) and Motorola Solutions (NYSE:MSI) 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 earnings, risk, institutional ownership, community ranking, profitability, valuation, analyst recommendations, media sentiment and dividends.
Telefonaktiebolaget LM Ericsson (publ) pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Motorola Solutions pays an annual dividend of $3.92 per share and has a dividend yield of 1.1%. Telefonaktiebolaget LM Ericsson (publ) pays out -22.9% of its earnings in the form of a dividend. Motorola Solutions pays out 48.5% 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.
8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are owned by institutional investors. Comparatively, 84.2% of Motorola Solutions shares are owned by institutional investors. 1.3% of Motorola Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Telefonaktiebolaget LM Ericsson (publ) currently has a consensus target price of $5.58, indicating a potential downside of 9.42%. Motorola Solutions has a consensus target price of $358.86, indicating a potential downside of 3.27%. Given Motorola Solutions' stronger consensus rating and higher probable upside, analysts clearly believe Motorola Solutions is more favorable than Telefonaktiebolaget LM Ericsson (publ).
In the previous week, Motorola Solutions had 3 more articles in the media than Telefonaktiebolaget LM Ericsson (publ). MarketBeat recorded 10 mentions for Motorola Solutions and 7 mentions for Telefonaktiebolaget LM Ericsson (publ). Motorola Solutions' average media sentiment score of 1.30 beat Telefonaktiebolaget LM Ericsson (publ)'s score of 0.21 indicating that Motorola Solutions is being referred to more favorably in the news media.
Motorola Solutions has a net margin of 13.64% compared to Telefonaktiebolaget LM Ericsson (publ)'s net margin of -9.75%. Motorola Solutions' return on equity of 398.16% beat Telefonaktiebolaget LM Ericsson (publ)'s return on equity.
Motorola Solutions 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 Motorola Solutions, indicating that it is currently the more affordable of the two stocks.
Motorola Solutions received 150 more outperform votes than Telefonaktiebolaget LM Ericsson (publ) when rated by MarketBeat users. Likewise, 67.41% of users gave Motorola Solutions an outperform vote while only 57.77% of users gave Telefonaktiebolaget LM Ericsson (publ) an outperform vote.
Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Summary
Motorola Solutions beats Telefonaktiebolaget LM Ericsson (publ) on 17 of the 20 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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