Ericsson (ERIC) Competitors

Vertiv (NYSE:VRT) and Ericsson (NASDAQ:ERIC) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, media sentiment, risk, earnings, profitability, valuation, dividends and institutional ownership.

Do insiders and institutionals hold more shares of VRT or ERIC?

89.9% of Vertiv shares are held by institutional investors. Comparatively, 8.0% of Ericsson shares are held by institutional investors. 2.6% of Vertiv shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Do analysts recommend VRT or ERIC?

Vertiv currently has a consensus price target of $144.95, suggesting a potential downside of 10.37%. Ericsson has a consensus price target of $9.80, suggesting a potential upside of 17.30%. Given Ericsson's higher probable upside, analysts clearly believe Ericsson is more favorable than Vertiv.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1 Sell rating(s)	6 Hold rating(s)	18 Buy rating(s)	2 Strong Buy rating(s)	2.78
Ericsson	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.67

Which has more risk & volatility, VRT or ERIC?

Vertiv has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Ericsson has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Does the media prefer VRT or ERIC?

In the previous week, Vertiv had 31 more articles in the media than Ericsson. MarketBeat recorded 43 mentions for Vertiv and 12 mentions for Ericsson. Vertiv's average media sentiment score of 1.39 beat Ericsson's score of 0.09 indicating that Vertiv is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vertiv	36 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ericsson	2 Very Positive mention(s)	1 Positive mention(s)	7 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is VRT or ERIC a better dividend stock?

Vertiv pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Ericsson pays an annual dividend of $0.20 per share and has a dividend yield of 2.4%. Vertiv pays out 7.2% of its earnings in the form of a dividend. Ericsson pays out 40.0% 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. Vertiv has raised its dividend for 2 consecutive years.

Which has better valuation and earnings, VRT or ERIC?

Vertiv has higher earnings, but lower revenue than Ericsson. Ericsson is trading at a lower price-to-earnings ratio than Vertiv, 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
Vertiv	$8.01B	7.71	$495.80M	$2.09	77.38
Ericsson	$23.45B	1.19	$1.89M	$0.50	16.71

Is VRT or ERIC more profitable?

Vertiv has a net margin of 8.93% compared to Ericsson's net margin of 7.06%. Vertiv's return on equity of 51.64% beat Ericsson's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vertiv	8.93%	51.64%	13.69%
Ericsson	7.06%	21.17%	6.64%

Summary

Vertiv beats Ericsson on 17 of the 20 factors compared between the two stocks.