Ericsson (ERIC) Competitors

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

Which has stronger earnings & valuation, ERIC or NXPI?

NXP Semiconductors has lower revenue, but higher earnings than Ericsson. Ericsson 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
Ericsson	$23.45B	1.07	$1.89M	$0.50	14.92
NXP Semiconductors	$12.61B	4.52	$2.51B	$9.18	24.61

Is ERIC or NXPI more profitable?

NXP Semiconductors has a net margin of 19.16% compared to Ericsson's net margin of 7.06%. NXP Semiconductors' return on equity of 29.62% beat Ericsson's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ericsson	7.06%	21.17%	6.64%
NXP Semiconductors	19.16%	29.62%	11.55%

Does the media prefer ERIC or NXPI?

In the previous week, Ericsson had 3 more articles in the media than NXP Semiconductors. MarketBeat recorded 29 mentions for Ericsson and 26 mentions for NXP Semiconductors. NXP Semiconductors' average media sentiment score of 1.16 beat Ericsson's score of 0.38 indicating that NXP Semiconductors is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ericsson	5 Very Positive mention(s)	5 Positive mention(s)	11 Neutral mention(s)	4 Negative mention(s)	2 Very Negative mention(s)	Neutral
NXP Semiconductors	16 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate ERIC or NXPI?

Ericsson presently has a consensus price target of $9.80, suggesting a potential upside of 31.37%. NXP Semiconductors has a consensus price target of $253.74, suggesting a potential upside of 12.32%. Given Ericsson's higher possible upside, research analysts plainly believe Ericsson is more favorable than NXP Semiconductors.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ericsson	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
NXP Semiconductors	0 Sell rating(s)	3 Hold rating(s)	15 Buy rating(s)	1 Strong Buy rating(s)	2.89

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

8.0% of Ericsson shares are held by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Which has more volatility and risk, ERIC or NXPI?

Ericsson has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Is ERIC or NXPI a better dividend stock?

Ericsson pays an annual dividend of $0.19 per share and has a dividend yield of 2.5%. NXP Semiconductors pays an annual dividend of $4.06 per share and has a dividend yield of 1.8%. Ericsson pays out 38.0% of its earnings in the form of a dividend. NXP Semiconductors pays out 44.2% 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. Ericsson is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

NXP Semiconductors beats Ericsson on 14 of the 19 factors compared between the two stocks.