Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsHewlett Packard Enterprise Co (HPE)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$12.56
-5.92%
TECHNOLOGY · Cap: $40.78B
HPE
Hewlett Packard Enterprise Co
$53.73
-1.64%
TECHNOLOGY · Cap: $63.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 519% more annual revenue ($240.31B vs $38.79B). ERIC leads profitability with a 10.9% profit margin vs 4.0%. HPE appears more attractively valued with a PEG of 0.85. HPE earns a higher WallStSmart Score of 59/100 (C).
ERIC
Hold42
out of 100
Grade: D
HPE
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$28.62
Current Price
$12.56
$16.06 discount
Intrinsic value data unavailable for HPE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 7.0B in free cash flow
Revenue surging 40.0% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
ROE of 6.0% — below average capital efficiency
4.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
Bull Case : HPE
The strongest argument for HPE centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 40.0% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Bear Case : HPE
The primary concerns for HPE are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 45.0x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ERIC profiles as a declining stock while HPE is a hypergrowth play — different risk/reward profiles.
HPE carries more volatility with a beta of 1.45 — expect wider price swings.
HPE is growing revenue faster at 40.0% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
HPE scores higher overall (59/100 vs 42/100) and 40.0% revenue growth. ERIC offers better value entry with a 61.1% 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.
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 →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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