ERIC
Telefonaktiebolaget LM Ericsson (publ)
Communication Equipment
Market Cap$36.64B
5Y Perf.+30.5%
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Stock Comparison
ERIC vs HPE
Revenue, margins, valuation, and 5-year total return — side by side.
HPE
Hewlett Packard Enterprise Company
Communication Equipment
Market Cap$39.92B
5Y Perf.+209.4%
ERIC vs HPE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ERIC | HPE |
|---|---|---|
| Industry | Communication Equipment | Communication Equipment |
| Market Cap | $36.64B | $39.92B |
| Revenue (TTM) | $229.96B | $35.79B |
| Net Income (TTM) | $27.75B | $-156M |
| Gross Margin | 48.1% | 30.7% |
| Operating Margin | 13.8% | 5.8% |
| Forward P/E | 2.0x | 12.5x |
| Total Debt | $46.04B | $22.36B |
| Cash & Equiv. | $43.93B | $5.77B |
ERIC vs HPE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ERIC
HPE
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Telefonaktiebolaget… (ERIC) | 100 | 130.5 | +30.5% |
| Hewlett Packard Ent… (HPE) | 100 | 309.4 | +209.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ERIC vs HPE
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. Hewlett Packard Enterprise Company 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
HPE
Hewlett Packard Enterprise Company
The Growth Play
HPE is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 14.1%, EPS growth -102.3%, 3Y rev CAGR 6.9%
- 276.0% 10Y total return vs ERIC's 78.8%
- 14.1% revenue growth vs ERIC's -14.2%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HPE | 14.1% revenue growth vs ERIC's -14.2% |
| Value | ERIC | Lower P/E (2.0x vs 12.5x) |
| Quality / Margins | ERIC | 12.1% margin vs HPE's -0.4% |
| Stability / Safety | ERIC | Beta 0.61 vs HPE's 1.62, lower leverage |
| Dividends | ERIC | 2.4% yield, vs HPE's 2.0% |
| Momentum (1Y) | HPE | +83.5% vs ERIC's +48.5% |
| Efficiency (ROA) | ERIC | 10.0% ROA vs HPE's -0.2%, ROIC 22.3% vs 3.5% |
ERIC vs HPE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
ERIC vs HPE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLERICLAGGINGHPE
HPEHewlett Packard Enter…
0leads
ERICTelefonaktiebolaget L…
2leads
6 Total Categories
CATEGORYLEADERvs HPEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ERIC5/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ERIC8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
ERIC leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ERIC is the larger business by revenue, generating $230.0B annually — 6.4x HPE's $35.8B. ERIC is the more profitable business, keeping 12.1% of every revenue dollar as net income compared to HPE's -0.4%. On growth, HPE holds the edge at +19.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| RevenueTrailing 12 months | $230.0B | $35.8B |
| EBITDAEarnings before interest/tax | $39.1B | $4.5B |
| Net IncomeAfter-tax profit | $27.7B | -$156M |
| Free Cash FlowCash after capex | $29.1B | $4.4B |
| Gross MarginGross profit ÷ Revenue | +48.1% | +30.7% |
| Operating MarginEBIT ÷ Revenue | +13.8% | +5.8% |
| Net MarginNet income ÷ Revenue | +12.1% | -0.4% |
| FCF MarginFCF ÷ Revenue | +12.6% | +12.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.2% | +19.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +70.7% | -26.2% |
ERIC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
Evenly matched — ERIC and HPE each lead in 3 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, ERIC's 9.1x EV/EBITDA is more attractive than HPE's 12.9x.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| Market CapShares × price | $36.6B | $39.9B |
| Enterprise ValueMkt cap + debt − cash | $36.9B | $56.5B |
| Trailing P/EPrice ÷ TTM EPS | 13.87x | -673.54x |
| Forward P/EPrice ÷ next-FY EPS est. | 2.03x | 12.47x |
| PEG RatioP/E ÷ EPS growth rate | 1.23x | — |
| EV / EBITDAEnterprise value multiple | 9.09x | 12.90x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 1.16x |
| Price / BookPrice ÷ Book value/share | 3.36x | 1.61x |
| Price / FCFMarket cap ÷ FCF | 11.96x | 63.67x |
Evenly matched — ERIC and HPE each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
ERIC leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
ERIC delivers a 29.0% return on equity — every $100 of shareholder capital generates $29 in annual profit, vs $-1 for HPE. ERIC carries lower financial leverage with a 0.42x debt-to-equity ratio, signaling a more conservative balance sheet compared to HPE's 0.90x. On the Piotroski fundamental quality scale (0–9), ERIC scores 6/9 vs HPE's 5/9, reflecting solid financial health.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| ROE (TTM)Return on equity | +29.0% | -0.6% |
| ROA (TTM)Return on assets | +10.0% | -0.2% |
| ROICReturn on invested capital | +22.3% | +3.5% |
| ROCEReturn on capital employed | +18.4% | +3.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.42x | 0.90x |
| Net DebtTotal debt minus cash | $2.1B | $16.6B |
| Cash & Equiv.Liquid assets | $43.9B | $5.8B |
| Total DebtShort + long-term debt | $46.0B | $22.4B |
| Interest CoverageEBIT ÷ Interest expense | 13.62x | -11.81x |
ERIC leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — ERIC and HPE each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HPE five years ago would be worth $20,404 today (with dividends reinvested), compared to $9,686 for ERIC. Over the past 12 months, HPE leads with a +83.5% total return vs ERIC's +48.5%. The 3-year compound annual growth rate (CAGR) favors ERIC at 33.1% vs HPE's 30.8% — a key indicator of consistent wealth creation.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| YTD ReturnYear-to-date | +27.3% | +24.9% |
| 1-Year ReturnPast 12 months | +48.5% | +83.5% |
| 3-Year ReturnCumulative with dividends | +135.6% | +124.0% |
| 5-Year ReturnCumulative with dividends | -3.1% | +104.0% |
| 10-Year ReturnCumulative with dividends | +78.8% | +276.0% |
| CAGR (3Y)Annualised 3-year return | +33.1% | +30.8% |
Evenly matched — ERIC and HPE each lead in 3 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ERIC and HPE each lead in 1 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 HPE's 1.62 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.61x | 1.62x |
| 52-Week HighHighest price in past year | $12.19 | $30.15 |
| 52-Week LowLowest price in past year | $7.16 | $16.17 |
| % of 52W HighCurrent price vs 52-week peak | +97.9% | +99.6% |
| RSI (14)Momentum oscillator 0–100 | 51.8 | 67.9 |
| Avg Volume (50D)Average daily shares traded | 9.9M | 15.1M |
Evenly matched — ERIC and HPE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — ERIC and HPE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ERIC as "Hold" and HPE as "Hold". Consensus price targets imply -4.4% upside for HPE (target: $29) vs -41.8% for ERIC (target: $7). For income investors, ERIC offers the higher dividend yield at 2.42% vs HPE's 2.00%.
| Metric | ERICTelefonaktiebolag… | HPEHewlett Packard E… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $6.94 | $28.71 |
| # AnalystsCovering analysts | 40 | 37 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +2.0% |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | $2.68 | $0.60 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.5% |
Evenly matched — ERIC and HPE each lead in 1 of 2 comparable metrics.
Key Takeaway
ERIC leads in 2 of 6 categories — strongest in Income & Cash Flow and Profitability & Efficiency. 4 categories are tied.
Best OverallTelefonaktiebolaget LM Eric… (ERIC)Leads 2 of 6 categories
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ERIC vs HPE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ERIC or HPE a better buy right now?
For growth investors, Hewlett Packard Enterprise Company (HPE) is the stronger pick with 14.
1% 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. 9x trailing P/E (2. 0x forward), making it the more compelling value choice. Analysts rate Telefonaktiebolaget LM Ericsson (publ) (ERIC) a "Hold" — based on 40 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 HPE?
On forward P/E, Telefonaktiebolaget LM Ericsson (publ) is actually cheaper at 2.
0x.
03Which is the better long-term investment — ERIC or HPE?
Over the past 5 years, Hewlett Packard Enterprise Company (HPE) delivered a total return of +104.
0%, compared to -3. 1% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over 10 years, the gap is even starker: HPE returned +276. 0% versus ERIC's +78. 8%. 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 HPE?
By beta (market sensitivity over 5 years), Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the lower-risk stock at 0.
61β versus Hewlett Packard Enterprise Company's 1. 62β — meaning HPE is approximately 163% 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 90% for Hewlett Packard Enterprise Company — giving it more financial flexibility in a downturn.
05Which is growing faster — ERIC or HPE?
By revenue growth (latest reported year), Hewlett Packard Enterprise Company (HPE) is pulling ahead at 14.
1% versus -14. 2% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over a 3-year CAGR, HPE leads at 6. 9% 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 HPE?
Telefonaktiebolaget LM Ericsson (publ) (ERIC) is the more profitable company, earning 12.
0% net margin versus 0. 2% for Hewlett Packard Enterprise Company — 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 4. 8% for HPE. 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 HPE more undervalued right now?
On forward earnings alone, Telefonaktiebolaget LM Ericsson (publ) (ERIC) trades at 2.
0x forward P/E versus 12. 5x for Hewlett Packard Enterprise Company — 10. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HPE: -4. 4% to $28. 71.
08Which pays a better dividend — ERIC or HPE?
All stocks in this comparison pay dividends.
Telefonaktiebolaget LM Ericsson (publ) (ERIC) offers the highest yield at 2. 4%, versus 2. 0% for Hewlett Packard Enterprise Company (HPE).
09Is ERIC or HPE 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). Hewlett Packard Enterprise Company (HPE) carries a higher beta of 1. 62 — 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: +78. 8%, HPE: +276. 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.
10What are the main differences between ERIC and HPE?
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; HPE 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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