ERIC
Telefonaktiebolaget LM Ericsson (publ)
Communication Equipment
Market Cap$36.87B
5Y Perf.+31.3%
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Stock Comparison
ERIC vs NOK
Revenue, margins, valuation, and 5-year total return — side by side.
NOK
Nokia Oyj
Communication Equipment
Market Cap$75.48B
5Y Perf.+233.9%
ERIC vs NOK — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ERIC | NOK |
|---|---|---|
| Industry | Communication Equipment | Communication Equipment |
| Market Cap | $36.87B | $75.48B |
| Revenue (TTM) | $229.96B | $20.00B |
| Net Income (TTM) | $27.75B | $796M |
| Gross Margin | 48.1% | 44.1% |
| Operating Margin | 13.8% | 4.1% |
| Forward P/E | 2.0x | 39.6x |
| Total Debt | $46.04B | $5.21B |
| Cash & Equiv. | $43.93B | $5.46B |
ERIC vs NOK — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ERIC
NOK
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Telefonaktiebolaget… (ERIC) | 100 | 131.3 | +31.3% |
| Nokia Oyj (NOK) | 100 | 333.9 | +233.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ERIC vs NOK
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ERIC leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Nokia Oyj is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
ERIC
Telefonaktiebolaget LM Ericsson (publ)
The Income Pick
ERIC carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.61, yield 2.4%
- Lower volatility, beta 0.61, Low D/E 41.8%, current ratio 1.29x
- Beta 0.61, yield 2.4%, current ratio 1.29x
Best for: income & stability and sleep-well-at-night
NOK
Nokia Oyj
The Growth Play
NOK is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 3.5%, EPS growth -52.2%, 3Y rev CAGR -5.8%
- 156.6% 10Y total return vs ERIC's 80.9%
- 3.5% revenue growth vs ERIC's -14.2%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | NOK | 3.5% revenue growth vs ERIC's -14.2% |
| Value | ERIC | Lower P/E (2.0x vs 39.6x) |
| Quality / Margins | ERIC | 12.1% margin vs NOK's 4.0% |
| Stability / Safety | ERIC | Beta 0.61 vs NOK's 0.97 |
| Dividends | ERIC | 2.4% yield, vs NOK's 1.2% |
| Momentum (1Y) | NOK | +165.1% vs ERIC's +47.9% |
| Efficiency (ROA) | ERIC | 10.0% ROA vs NOK's 2.2%, ROIC 22.3% vs 3.0% |
ERIC vs NOK — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
Segment breakdown not available.
ERIC vs NOK — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLERICLAGGINGNOK
NOKNokia Oyj
1leads
ERICTelefonaktiebolaget L…
4leads
6 Total Categories
CATEGORYLEADERvs NOKMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ERIC4/6
Valuation MetricsMultiples, price ratios, and targets
ERIC5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ERIC5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
NOK6/6
Risk & VolatilityBeta, volatility, and downside exposure
ERIC2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
ERIC leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ERIC is the larger business by revenue, generating $230.0B annually — 11.5x NOK's $20.0B. ERIC is the more profitable business, keeping 12.1% of every revenue dollar as net income compared to NOK's 4.0%. On growth, NOK holds the edge at +2.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| RevenueTrailing 12 months | $230.0B | $20.0B |
| EBITDAEarnings before interest/tax | $39.1B | $1.9B |
| Net IncomeAfter-tax profit | $27.7B | $796M |
| Free Cash FlowCash after capex | $29.1B | $1.5B |
| Gross MarginGross profit ÷ Revenue | +48.1% | +44.1% |
| Operating MarginEBIT ÷ Revenue | +13.8% | +4.1% |
| Net MarginNet income ÷ Revenue | +12.1% | +4.0% |
| FCF MarginFCF ÷ Revenue | +12.6% | +7.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.2% | +2.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +70.7% | +2.8% |
ERIC leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
ERIC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 13.8x trailing earnings, ERIC trades at a 86% valuation discount to NOK's 102.2x P/E. On an enterprise value basis, ERIC's 9.0x EV/EBITDA is more attractive than NOK's 33.7x.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| Market CapShares × price | $36.9B | $75.5B |
| Enterprise ValueMkt cap + debt − cash | $37.1B | $75.2B |
| Trailing P/EPrice ÷ TTM EPS | 13.81x | 102.17x |
| Forward P/EPrice ÷ next-FY EPS est. | 2.04x | 39.55x |
| PEG RatioP/E ÷ EPS growth rate | 1.22x | — |
| EV / EBITDAEnterprise value multiple | 9.05x | 33.70x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 3.23x |
| Price / BookPrice ÷ Book value/share | 3.35x | 2.94x |
| Price / FCFMarket cap ÷ FCF | 11.91x | 45.71x |
ERIC leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
ERIC leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
ERIC delivers a 29.0% return on equity — every $100 of shareholder capital generates $29 in annual profit, vs $4 for NOK. NOK carries lower financial leverage with a 0.25x debt-to-equity ratio, signaling a more conservative balance sheet compared to ERIC's 0.42x. On the Piotroski fundamental quality scale (0–9), ERIC scores 6/9 vs NOK's 5/9, reflecting solid financial health.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| ROE (TTM)Return on equity | +29.0% | +3.9% |
| ROA (TTM)Return on assets | +10.0% | +2.2% |
| ROICReturn on invested capital | +22.3% | +3.0% |
| ROCEReturn on capital employed | +18.4% | +2.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.42x | 0.25x |
| Net DebtTotal debt minus cash | $2.1B | -$252M |
| Cash & Equiv.Liquid assets | $43.9B | $5.5B |
| Total DebtShort + long-term debt | $46.0B | $5.2B |
| Interest CoverageEBIT ÷ Interest expense | 13.62x | — |
ERIC leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
NOK leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NOK five years ago would be worth $28,199 today (with dividends reinvested), compared to $9,739 for ERIC. Over the past 12 months, NOK leads with a +165.1% total return vs ERIC's +47.9%. The 3-year compound annual growth rate (CAGR) favors NOK at 49.0% vs ERIC's 33.0% — a key indicator of consistent wealth creation.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| YTD ReturnYear-to-date | +28.1% | +103.6% |
| 1-Year ReturnPast 12 months | +47.9% | +165.1% |
| 3-Year ReturnCumulative with dividends | +135.2% | +230.5% |
| 5-Year ReturnCumulative with dividends | -2.6% | +182.0% |
| 10-Year ReturnCumulative with dividends | +80.9% | +156.6% |
| CAGR (3Y)Annualised 3-year return | +33.0% | +49.0% |
NOK leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
ERIC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ERIC is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than NOK's 0.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ERIC currently trades 98.5% from its 52-week high vs NOK's 94.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.61x | 0.97x |
| 52-Week HighHighest price in past year | $12.19 | $13.98 |
| 52-Week LowLowest price in past year | $7.16 | $4.00 |
| % of 52W HighCurrent price vs 52-week peak | +98.5% | +94.3% |
| RSI (14)Momentum oscillator 0–100 | 57.1 | 81.1 |
| Avg Volume (50D)Average daily shares traded | 10.0M | 78.0M |
ERIC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — ERIC and NOK each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ERIC as "Hold" and NOK as "Buy". Consensus price targets imply -12.7% upside for NOK (target: $12) vs -42.2% for ERIC (target: $7). For income investors, ERIC offers the higher dividend yield at 2.43% vs NOK's 1.17%.
| Metric | ERICTelefonaktiebolag… | NOKNokia Oyj |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $6.94 | $11.52 |
| # AnalystsCovering analysts | 40 | 52 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 4 |
| Dividend / ShareAnnual DPS | $2.68 | $0.13 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.9% |
Evenly matched — ERIC and NOK each lead in 1 of 2 comparable metrics.
Key Takeaway
ERIC leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). NOK leads in 1 (Total Returns). 1 tied.
Best OverallTelefonaktiebolaget LM Eric… (ERIC)Leads 4 of 6 categories
Loading custom metrics...
ERIC vs NOK: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ERIC or NOK a better buy right now?
For growth investors, Nokia Oyj (NOK) is the stronger pick with 3.
5% revenue growth year-over-year, versus -14. 2% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Telefonaktiebolaget LM Ericsson (publ) (ERIC) offers the better valuation at 13. 8x trailing P/E (2. 0x forward), making it the more compelling value choice. Analysts rate Nokia Oyj (NOK) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ERIC or NOK?
On trailing P/E, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the cheapest at 13.
8x versus Nokia Oyj at 102. 2x. On forward P/E, Telefonaktiebolaget LM Ericsson (publ) is actually cheaper at 2. 0x.
03Which is the better long-term investment — ERIC or NOK?
Over the past 5 years, Nokia Oyj (NOK) delivered a total return of +182.
0%, compared to -2. 6% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over 10 years, the gap is even starker: NOK returned +156. 6% versus ERIC's +80. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ERIC or NOK?
By beta (market sensitivity over 5 years), Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the lower-risk stock at 0.
61β versus Nokia Oyj's 0. 97β — meaning NOK is approximately 58% more volatile than ERIC relative to the S&P 500. On balance sheet safety, Nokia Oyj (NOK) carries a lower debt/equity ratio of 25% versus 42% for Telefonaktiebolaget LM Ericsson (publ) — giving it more financial flexibility in a downturn.
05Which is growing faster — ERIC or NOK?
By revenue growth (latest reported year), Nokia Oyj (NOK) is pulling ahead at 3.
5% versus -14. 2% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over a 3-year CAGR, NOK leads at -5. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ERIC or NOK?
Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the more profitable company, earning 12.
0% net margin versus 3. 3% for Nokia Oyj — meaning it keeps 12. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ERIC leads at 13. 8% versus 3. 9% for NOK. At the gross margin level — before operating expenses — ERIC leads at 48. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ERIC or NOK more undervalued right now?
On forward earnings alone, Telefonaktiebolaget LM Ericsson (publ) (ERIC) trades at 2.
0x forward P/E versus 39. 6x for Nokia Oyj — 37. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NOK: -12. 7% to $11. 52.
08Which pays a better dividend — ERIC or NOK?
All stocks in this comparison pay dividends.
Telefonaktiebolaget LM Ericsson (publ) (ERIC) offers the highest yield at 2. 4%, versus 1. 2% for Nokia Oyj (NOK).
09Is ERIC or NOK better for a retirement portfolio?
For long-horizon retirement investors, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
61), 2. 4% yield). Both have compounded well over 10 years (ERIC: +80. 9%, NOK: +156. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ERIC and NOK?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ERIC is a mid-cap deep-value stock; NOK is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(ERIC: -9.2% · NOK: 2.4%)Net Margin>
%
(ERIC: 12.1% · NOK: 4.0%)P/E Ratio<
x
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