WallStSmart

Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsNokia Corp ADR (NOK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Telefonaktiebolaget LM Ericsson B ADR generates 1102% more annual revenue ($240.31B vs $20.00B). ERIC leads profitability with a 10.9% profit margin vs 4.0%. NOK appears more attractively valued with a PEG of 1.07. ERIC earns a higher WallStSmart Score of 42/100 (D).

ERIC

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 6.5Value: 6.7Quality: 5.8
Piotroski: 4/9

NOK

Hold

40

out of 100

Grade: F

Growth: 2.7Profit: 4.5Value: 5.3Quality: 7.0
Piotroski: 4/9Altman Z: 1.65
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERICUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$81.18

Current Price

$11.76

$69.42 discount

UndervaluedFair: $81.18Overvalued
NOKUndervalued (+16.4%)

Margin of Safety

+16.4%

Fair Value

$8.78

Current Price

$13.30

$4.52 discount

UndervaluedFair: $8.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERIC4 strengths · Avg: 8.8/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
27.0%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$7.03B8/10

Generating 7.0B in free cash flow

NOK2 strengths · Avg: 9.0/10
Market CapQuality
$72.07B9/10

Large-cap with strong market position

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Areas to Watch

ERIC4 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

Revenue GrowthGrowth
-10.3%2/10

Revenue declined 10.3%

EPS GrowthGrowth
-78.5%2/10

Earnings declined 78.5%

NOK4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ERIC

The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.

Bull Case : NOK

The strongest argument for NOK centers on Market Cap, Debt/Equity. PEG of 1.07 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 : NOK

The primary concerns for NOK are Revenue Growth, Altman Z-Score, Return on Equity. A P/E of 80.7x 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 NOK is a value play — different risk/reward profiles.

NOK carries more volatility with a beta of 0.51 — expect wider price swings.

NOK is growing revenue faster at 2.4% — sustainability is the question.

ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.

Bottom Line

ERIC scores higher overall (42/100 vs 40/100). NOK offers better value entry with a 16.4% margin of safety. Both earn "Hold" 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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Nokia Corp ADR

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Nokia Corporation offers fixed and mobile network solutions globally. The company is headquartered in Espoo, Finland.

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