ERIC vs VIAV vs KEYS vs CSCO

For growth investors, Viavi Solutions Inc.

(VIAV) is the stronger pick with 8. 4% 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 Viavi Solutions Inc. (VIAV) a "Buy" — based on 19 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 Viavi Solutions Inc. at 353. 3x. 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 Viavi Solutions Inc. 's 12. 55x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Viavi Solutions Inc.

(VIAV) delivered a total return of +227. 4%, compared to -2. 6% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). Over 10 years, the gap is even starker: KEYS returned +1311% 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 Keysight Technologies, Inc. 's 1. 71β — meaning KEYS is approximately 178% 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 89% for Viavi Solutions Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Viavi Solutions Inc.

(VIAV) is pulling ahead at 8. 4% versus -14. 2% for Telefonaktiebolaget LM Ericsson (publ) (ERIC). On earnings-per-share growth, the picture is similar: Viavi Solutions Inc. grew EPS 225. 0% year-over-year, compared to 0. 4% for Cisco Systems, Inc.. Over a 3-year CAGR, CSCO leads at 3. 2% 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.

Cisco Systems, Inc.

(CSCO) is the more profitable company, earning 18. 0% net margin versus 3. 2% for Viavi Solutions Inc. — meaning it keeps 18. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CSCO leads at 20. 8% versus 6. 5% for VIAV. At the gross margin level — before operating expenses — CSCO leads at 64. 9%, 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 Viavi Solutions Inc. 's 12. 55x. 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 57. 3x for Viavi Solutions Inc. — 55. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CSCO: 5. 3% to $96. 50.

In this comparison, ERIC (2.

4% yield), CSCO (1. 8% yield) pay a dividend. VIAV, KEYS do not pay a meaningful dividend and should not be held primarily for income.

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). Viavi Solutions Inc. (VIAV) carries a higher beta of 1. 54 — 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%, VIAV: +734. 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.

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; VIAV is a mid-cap quality compounder stock; KEYS is a mid-cap quality compounder stock; CSCO is a large-cap quality compounder stock. ERIC, CSCO pay a dividend while VIAV, KEYS do not, making them suitable for different income and tax situations. 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.