WallStSmart

Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsHewlett Packard Enterprise Co (HPE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Telefonaktiebolaget LM Ericsson B ADR generates 474% more annual revenue ($240.31B vs $41.87B). ERIC leads profitability with a 8.4% profit margin vs 6.7%. HPE appears more attractively valued with a PEG of 0.49. HPE earns a higher WallStSmart Score of 72/100 (B).

ERIC

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 6.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.11

HPE

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 5.0Value: 6.3Quality: 4.0
Piotroski: 3/9Altman Z: 0.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERICUndervalued (+66.5%)

Margin of Safety

+66.5%

Fair Value

$33.29

Current Price

$10.89

$22.40 discount

UndervaluedFair: $33.29Overvalued

Intrinsic value data unavailable for HPE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERIC3 strengths · Avg: 8.7/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$5.33B8/10

Generating 5.3B in free cash flow

HPE5 strengths · Avg: 9.4/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
410.2%10/10

Earnings expanding 410.2% YoY

Market CapQuality
$80.09B9/10

Large-cap with strong market position

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

ERIC3 concerns · Avg: 2.3/10
Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

PEG RatioValuation
3.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-46.8%2/10

Earnings declined 46.8%

HPE4 concerns · Avg: 3.0/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ERIC

The strongest argument for ERIC centers on Price/Book, P/E Ratio, Free Cash Flow.

Bull Case : HPE

The strongest argument for HPE centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.49 suggests the stock is reasonably priced for its growth.

Bear Case : ERIC

The primary concerns for ERIC are Operating Margin, PEG Ratio, EPS Growth.

Bear Case : HPE

The primary concerns for HPE are P/E Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

ERIC profiles as a value stock while HPE is a hypergrowth play — different risk/reward profiles.

HPE carries more volatility with a beta of 1.40 — expect wider price swings.

HPE is growing revenue faster at 33.7% — sustainability is the question.

ERIC generates stronger free cash flow (5.3B), providing more financial flexibility.

Bottom Line

HPE scores higher overall (72/100 vs 41/100) and 33.7% revenue growth. ERIC offers better value entry with a 66.5% margin of safety. Both earn "Strong 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.

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.

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Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

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