ERIC vs. NOK, UI, MSI, VRSN, PSTG, SWKS, GDDY, TER, OKTA, and CHKP
Should you be buying Telefonaktiebolaget LM Ericsson (publ) stock or one of its competitors? The main competitors of Telefonaktiebolaget LM Ericsson (publ) include Nokia Oyj (NOK), Ubiquiti (UI), Motorola Solutions (MSI), VeriSign (VRSN), Pure Storage (PSTG), Skyworks Solutions (SWKS), GoDaddy (GDDY), Teradyne (TER), Okta (OKTA), and Check Point Software Technologies (CHKP). These companies are all part of the "computer and technology" sector.
Nokia Oyj (NYSE:NOK) and Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, media sentiment, community ranking, risk, profitability, valuation and earnings.
Nokia Oyj pays an annual dividend of $0.11 per share and has a dividend yield of 3.0%. Telefonaktiebolaget LM Ericsson (publ) pays an annual dividend of $0.16 per share and has a dividend yield of 3.0%. Nokia Oyj pays out 68.8% of its earnings in the form of a dividend. Telefonaktiebolaget LM Ericsson (publ) pays out -22.9% 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. Nokia Oyj has raised its dividend for 1 consecutive years and Telefonaktiebolaget LM Ericsson (publ) has raised its dividend for 1 consecutive years. Telefonaktiebolaget LM Ericsson (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Nokia Oyj received 346 more outperform votes than Telefonaktiebolaget LM Ericsson (publ) when rated by MarketBeat users. Likewise, 60.88% of users gave Nokia Oyj an outperform vote while only 57.77% of users gave Telefonaktiebolaget LM Ericsson (publ) an outperform vote.
In the previous week, Nokia Oyj had 18 more articles in the media than Telefonaktiebolaget LM Ericsson (publ). MarketBeat recorded 28 mentions for Nokia Oyj and 10 mentions for Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ)'s average media sentiment score of 0.16 beat Nokia Oyj's score of -0.14 indicating that Nokia Oyj is being referred to more favorably in the media.
Nokia Oyj presently has a consensus target price of $4.42, indicating a potential upside of 18.68%. Telefonaktiebolaget LM Ericsson (publ) has a consensus target price of $5.58, indicating a potential upside of 4.49%. Given Telefonaktiebolaget LM Ericsson (publ)'s stronger consensus rating and higher possible upside, research analysts plainly believe Nokia Oyj is more favorable than Telefonaktiebolaget LM Ericsson (publ).
Nokia Oyj has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
5.3% of Nokia Oyj shares are held by institutional investors. Comparatively, 8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Nokia Oyj has a net margin of 3.90% compared to Nokia Oyj's net margin of -9.75%. Nokia Oyj's return on equity of 11.93% beat Telefonaktiebolaget LM Ericsson (publ)'s return on equity.
Nokia Oyj has higher earnings, but lower revenue than Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ) is trading at a lower price-to-earnings ratio than Nokia Oyj, indicating that it is currently the more affordable of the two stocks.
Summary
Nokia Oyj beats Telefonaktiebolaget LM Ericsson (publ) on 14 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ERIC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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