Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsSonos Inc (SONO)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.07
-0.14%
TECHNOLOGY · Cap: $35.91B
SONO
Sonos Inc
$17.75
-0.67%
TECHNOLOGY · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 16024% more annual revenue ($240.31B vs $1.49B). ERIC leads profitability with a 8.4% profit margin vs 3.8%. ERIC trades at a lower P/E of 17.9x. SONO earns a higher WallStSmart Score of 47/100 (D+).
ERIC
Hold41
out of 100
Grade: D
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.5%
Fair Value
$33.29
Current Price
$11.06
$22.23 discount
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$17.75
$5.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Generating 5.3B in free cash flow
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Earnings declined 46.8%
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, P/E Ratio, Free Cash Flow.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, EPS Growth.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
ERIC generates stronger free cash flow (5.3B), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SONO scores higher overall (47/100 vs 41/100). ERIC offers better value entry with a 66.5% 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.
Visit Website →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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