Ericsson (ERIC) Competitors

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

Does the media refer more to NXPI or ERIC?

In the previous week, NXP Semiconductors had 10 more articles in the media than Ericsson. MarketBeat recorded 19 mentions for NXP Semiconductors and 9 mentions for Ericsson. NXP Semiconductors' average media sentiment score of 1.15 beat Ericsson's score of 0.67 indicating that NXP Semiconductors is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
NXP Semiconductors	13 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Ericsson	6 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, NXPI or ERIC?

NXP Semiconductors has higher earnings, but lower revenue 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
NXP Semiconductors	$12.12B	4.34	$2.51B	$8.39	24.89
Ericsson	$245.86B	0.10	$1.89M	$0.50	15.07

Do analysts prefer NXPI or ERIC?

NXP Semiconductors currently has a consensus target price of $256.05, indicating a potential upside of 22.60%. Ericsson has a consensus target price of $9.80, indicating a potential upside of 30.06%. Given Ericsson's higher probable upside, analysts plainly believe Ericsson is more favorable than NXP Semiconductors.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	0 Sell rating(s)	3 Hold rating(s)	15 Buy rating(s)	2 Strong Buy rating(s)	2.95
Ericsson	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is NXPI or ERIC a better dividend stock?

NXP Semiconductors pays an annual dividend of $4.05 per share and has a dividend yield of 1.9%. Ericsson pays an annual dividend of $0.18 per share and has a dividend yield of 2.4%. NXP Semiconductors pays out 48.3% of its earnings in the form of a dividend. Ericsson pays out 36.0% 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. Ericsson is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more risk & volatility, NXPI or ERIC?

NXP Semiconductors has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Ericsson has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Is NXPI or ERIC more profitable?

NXP Semiconductors has a net margin of 17.72% compared to Ericsson's net margin of 7.06%. NXP Semiconductors' return on equity of 27.99% beat Ericsson's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	17.72%	27.99%	10.75%
Ericsson	7.06%	21.17%	6.64%

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

90.5% of NXP Semiconductors shares are owned by institutional investors. Comparatively, 8.0% of Ericsson shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

NXP Semiconductors beats Ericsson on 15 of the 19 factors compared between the two stocks.