ERIC vs AVGO

For growth investors, Broadcom Inc.

(AVGO) is the stronger pick with 23. 9% 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 Broadcom Inc. (AVGO) a "Buy" — based on 58 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.

On trailing P/E, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the cheapest at 13.

8x versus Broadcom Inc. at 89. 2x. On forward P/E, Telefonaktiebolaget LM Ericsson (publ) is actually cheaper at 2. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Telefonaktiebolaget LM Ericsson (publ) wins at 0. 18x versus Broadcom Inc. 's 0. 75x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Broadcom Inc.

(AVGO) delivered a total return of +870. 6%, compared to -2. 6% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over 10 years, the gap is even starker: AVGO returned +30. 0% 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.

By beta (market sensitivity over 5 years), Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the lower-risk stock at 0.

61β versus Broadcom Inc. 's 1. 96β — meaning AVGO is approximately 220% more volatile than ERIC relative to the S&P 500. On balance sheet safety, Telefonaktiebolaget LM Ericsson (publ) (ERIC) carries a lower debt/equity ratio of 42% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Broadcom Inc.

(AVGO) is pulling ahead at 23. 9% versus -14. 2% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over a 3-year CAGR, AVGO leads at 24. 4% 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.

Broadcom Inc.

(AVGO) is the more profitable company, earning 36. 2% net margin versus 12. 0% for Telefonaktiebolaget LM Ericsson (publ) — meaning it keeps 36. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39. 9% versus 13. 8% for ERIC. At the gross margin level — before operating expenses — AVGO leads at 67. 8%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the more undervalued stock at a PEG of 0. 18x versus Broadcom Inc. 's 0. 75x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Telefonaktiebolaget LM Ericsson (publ) (ERIC) trades at 2. 0x forward P/E versus 37. 6x for Broadcom Inc. — 35. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 4. 3% to $443. 72.

All stocks in this comparison pay dividends.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) offers the highest yield at 2. 4%, versus 0. 5% for Broadcom Inc. (AVGO).

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). Broadcom Inc. (AVGO) carries a higher beta of 1. 96 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ERIC: +80. 9%, AVGO: +30. 0%), 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.

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; AVGO is a mega-cap high-growth 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.