Ciena Corp (CIEN)vsTelefonaktiebolaget LM Ericsson B ADR (ERIC)
CIEN
Ciena Corp
$535.29
+1.46%
TECHNOLOGY · Cap: $67.22B
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.76
-0.42%
TECHNOLOGY · Cap: $39.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 4590% more annual revenue ($240.31B vs $5.12B). ERIC leads profitability with a 10.9% profit margin vs 4.5%. CIEN appears more attractively valued with a PEG of 1.98. CIEN earns a higher WallStSmart Score of 54/100 (C-).
CIEN
Buy54
out of 100
Grade: C-
ERIC
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CIEN.
Margin of Safety
+86.3%
Fair Value
$81.18
Current Price
$11.76
$69.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.1% year-over-year
Earnings expanding 232.3% YoY
Large-cap with strong market position
Reasonable price relative to book value
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Generating 7.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.5% margin — thin
Premium valuation, high expectations priced in
Trading at 27.1x book value
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CIEN
The strongest argument for CIEN centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 33.1% demonstrates continued momentum.
Bull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
Bear Case : CIEN
The primary concerns for CIEN are PEG Ratio, Profit Margin, P/E Ratio. A P/E of 302.8x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CIEN profiles as a hypergrowth stock while ERIC is a declining play — different risk/reward profiles.
CIEN carries more volatility with a beta of 1.02 — expect wider price swings.
CIEN is growing revenue faster at 33.1% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
CIEN scores higher overall (54/100 vs 42/100) and 33.1% revenue growth. ERIC offers better value entry with a 86.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ciena Corp
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ciena Corporation provides hardware, software, and network services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company is headquartered in Hanover, Maryland.
Visit Website →Telefonaktiebolaget LM Ericsson B ADR
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
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