Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsUbiquiti Networks Inc (UI)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.47
-3.69%
TECHNOLOGY · Cap: $40.27B
UI
Ubiquiti Networks Inc
$784.88
-0.46%
TECHNOLOGY · Cap: $46.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 7986% more annual revenue ($240.31B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 12.0%. UI appears more attractively valued with a PEG of 0.82. UI earns a higher WallStSmart Score of 73/100 (B).
ERIC
Buy52
out of 100
Grade: C-
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.8%
Fair Value
$42.59
Current Price
$11.47
$31.12 discount
Margin of Safety
-1.8%
Fair Value
$700.60
Current Price
$784.88
$84.28 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Generating 14.9B in free cash flow
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Keeps 30 of every $100 in revenue as profit
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 5.0%
Premium valuation, high expectations priced in
Trading at 46.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, EPS Growth, Free Cash Flow.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 51.8x leaves little room for execution misses.
Key Dynamics to Monitor
ERIC profiles as a declining stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.37 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
ERIC generates stronger free cash flow (14.9B), providing more financial flexibility.
Bottom Line
UI scores higher overall (73/100 vs 52/100), backed by strong 29.9% margins and 35.8% revenue growth. ERIC offers better value entry with a 73.8% margin of safety. Both earn "Strong Buy" and "Buy" 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 →Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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