Telefonaktiebolaget LM Ericsson (publ) (ERIC) Competitors

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) and NXP Semiconductors (NASDAQ:NXPI) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, media sentiment, valuation, earnings, analyst recommendations, dividends, institutional ownership, community ranking and risk.

Do institutionals & insiders hold more shares of ERIC or NXPI?

8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are owned by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned 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.

Is ERIC or NXPI more profitable?

NXP Semiconductors has a net margin of 20.98% compared to Telefonaktiebolaget LM Ericsson (publ)'s net margin of -0.47%. NXP Semiconductors' return on equity of 33.57% beat Telefonaktiebolaget LM Ericsson (publ)'s return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Telefonaktiebolaget LM Ericsson (publ)	-0.47%	13.31%	4.33%
NXP Semiconductors	20.98%	33.57%	13.21%

Does the MarketBeat Community prefer ERIC or NXPI?

NXP Semiconductors received 472 more outperform votes than Telefonaktiebolaget LM Ericsson (publ) when rated by MarketBeat users. Likewise, 73.72% of users gave NXP Semiconductors an outperform vote while only 57.78% of users gave Telefonaktiebolaget LM Ericsson (publ) an outperform vote.

Company	Underperform	Outperform
Telefonaktiebolaget LM Ericsson (publ)	Outperform Votes 639 57.78%	Underperform Votes 467 42.22%
NXP Semiconductors	Outperform Votes 1111 73.72%	Underperform Votes 396 26.28%

Which has more risk & volatility, ERIC or NXPI?

Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Is ERIC or NXPI a better dividend stock?

Telefonaktiebolaget LM Ericsson (publ) pays an annual dividend of $0.17 per share and has a dividend yield of 2.0%. NXP Semiconductors pays an annual dividend of $4.06 per share and has a dividend yield of 1.9%. Telefonaktiebolaget LM Ericsson (publ) pays out -566.7% of its earnings in the form of a dividend. NXP Semiconductors pays out 38.7% 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.

Do analysts prefer ERIC or NXPI?

Telefonaktiebolaget LM Ericsson (publ) presently has a consensus price target of $6.70, indicating a potential downside of 21.55%. NXP Semiconductors has a consensus price target of $271.60, indicating a potential upside of 26.11%. Given NXP Semiconductors' stronger consensus rating and higher possible upside, analysts plainly believe NXP Semiconductors is more favorable than Telefonaktiebolaget LM Ericsson (publ).

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefonaktiebolaget LM Ericsson (publ)	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.50
NXP Semiconductors	1 Sell rating(s)	4 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.68

Which has stronger valuation & earnings, ERIC or NXPI?

NXP Semiconductors 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 NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefonaktiebolaget LM Ericsson (publ)	$24.83B	1.15	-$2.49B	-$0.03	-284.67
NXP Semiconductors	$13.28B	4.12	$2.80B	$10.48	20.55

Does the media favor ERIC or NXPI?

In the previous week, NXP Semiconductors had 18 more articles in the media than Telefonaktiebolaget LM Ericsson (publ). MarketBeat recorded 23 mentions for NXP Semiconductors and 5 mentions for Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ)'s average media sentiment score of 0.99 beat NXP Semiconductors' score of 0.80 indicating that Telefonaktiebolaget LM Ericsson (publ) is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Telefonaktiebolaget LM Ericsson (publ)	3 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
NXP Semiconductors	11 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

NXP Semiconductors beats Telefonaktiebolaget LM Ericsson (publ) on 16 of the 20 factors compared between the two stocks.