Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsSonos Inc (SONO)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$12.56
-5.92%
TECHNOLOGY · Cap: $40.78B
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 16361% more annual revenue ($240.31B vs $1.46B). ERIC leads profitability with a 10.9% profit margin vs 1.6%. ERIC trades at a lower P/E of 15.5x. SONO earns a higher WallStSmart Score of 45/100 (D+).
ERIC
Hold42
out of 100
Grade: D
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$28.62
Current Price
$12.56
$16.06 discount
Margin of Safety
-34.6%
Fair Value
$12.26
Current Price
$15.08
$2.82 premium
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
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
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, Revenue Growth.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ERIC profiles as a declining stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.4% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
SONO scores higher overall (45/100 vs 42/100). ERIC offers better value entry with a 61.1% 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.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?