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 investment? We will compare the two companies based on the strength of their community ranking, profitability, earnings, valuation, media sentiment, analyst recommendations, risk, institutional ownership and dividends.

Does the media prefer ERIC or NXPI?

In the previous week, NXP Semiconductors had 20 more articles in the media than Telefonaktiebolaget LM Ericsson (publ). MarketBeat recorded 29 mentions for NXP Semiconductors and 9 mentions for Telefonaktiebolaget LM Ericsson (publ). NXP Semiconductors' average media sentiment score of 1.58 beat Telefonaktiebolaget LM Ericsson (publ)'s score of 1.31 indicating that NXP Semiconductors is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Telefonaktiebolaget LM Ericsson (publ)	7 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
NXP Semiconductors	27 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Does the MarketBeat Community prefer ERIC or NXPI?

NXP Semiconductors received 484 more outperform votes than Telefonaktiebolaget LM Ericsson (publ) when rated by MarketBeat users. Likewise, 73.53% of users gave NXP Semiconductors an outperform vote while only 57.75% of users gave Telefonaktiebolaget LM Ericsson (publ) an outperform vote.

Company	Underperform	Outperform
Telefonaktiebolaget LM Ericsson (publ)	Outperform Votes 641 57.75%	Underperform Votes 469 42.25%
NXP Semiconductors	Outperform Votes 1125 73.53%	Underperform Votes 405 26.47%

Do institutionals & insiders have more ownership in 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, hedge funds and large money managers believe a company will outperform the market over the long term.

Is ERIC or NXPI more profitable?

NXP Semiconductors has a net margin of 19.90% compared to Telefonaktiebolaget LM Ericsson (publ)'s net margin of 0.06%. NXP Semiconductors' return on equity of 31.45% beat Telefonaktiebolaget LM Ericsson (publ)'s return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Telefonaktiebolaget LM Ericsson (publ)	0.06%	13.70%	4.42%
NXP Semiconductors	19.90%	31.45%	12.56%

Do analysts prefer ERIC or NXPI?

Telefonaktiebolaget LM Ericsson (publ) currently has a consensus target price of $9.80, suggesting a potential upside of 10.61%. NXP Semiconductors has a consensus target price of $246.22, suggesting a potential upside of 19.90%. Given NXP Semiconductors' stronger consensus rating and higher probable upside, analysts clearly 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)	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)	14 Buy rating(s)	1 Strong Buy rating(s)	2.89

Which has better valuation & earnings, ERIC or NXPI?

NXP Semiconductors has lower revenue, but higher earnings than Telefonaktiebolaget LM Ericsson (publ). NXP Semiconductors is trading at a lower price-to-earnings ratio than Telefonaktiebolaget LM Ericsson (publ), 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)	$249.58B	0.12	$1.89M	$0.05	177.20
NXP Semiconductors	$12.32B	4.21	$2.51B	$9.18	22.37

Is ERIC or NXPI a better dividend stock?

Telefonaktiebolaget LM Ericsson (publ) pays an annual dividend of $0.18 per share and has a dividend yield of 2.0%. NXP Semiconductors pays an annual dividend of $4.05 per share and has a dividend yield of 2.0%. Telefonaktiebolaget LM Ericsson (publ) pays out 360.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NXP Semiconductors pays out 44.1% of its earnings in the form of a dividend.

Which has more risk and volatility, ERIC or NXPI?

Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

NXP Semiconductors beats Telefonaktiebolaget LM Ericsson (publ) on 19 of the 21 factors compared between the two stocks.