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ADI vs. ERIC: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ADI and ERIC, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ADI dominates in value with a market cap of 110.22 billion USD, eclipsing ERIC’s 29.42 billion USD by roughly 3.75×.

ADI’s beta of 0.98 points to much larger expected swings compared to ERIC’s calmer 0.44, suggesting both higher upside and downside potential.

ERIC is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ADI, which is purely domestic.

SymbolADIERIC
Company NameAnalog Devices, Inc.Telefonaktiebolaget LM Ericsson (publ)
CountryUSSE
SectorTechnologyTechnology
IndustrySemiconductorsCommunication Equipment
CEOMr. Vincent T. RocheMr. Anthony F. Bartolo
Price222.22 USD8.86 USD
Market Cap110.22 billion USD29.42 billion USD
Beta0.980.44
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980August 24, 1981
ADRNoYes

Performance Comparison

This chart compares the performance of ADI and ERIC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ADI and ERIC based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ERIC features a high P/E of 175.26, indicating strong growth expectations, compared to ADI at 70.50, which trades at a more standard valuation based on its current earnings.
  • ERIC shows a negative forward PEG of -63.14, signaling expected earnings contraction, while ADI at 3.93 maintains analysts’ projections for stable or improved profits.
SymbolADIERIC
Price-to-Earnings Ratio (P/E, TTM)70.50175.26
Forward PEG Ratio (TTM)3.93-63.14
Price-to-Sales Ratio (P/S, TTM)11.801.13
Price-to-Book Ratio (P/B, TTM)3.143.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)34.626.70
EV-to-EBITDA (TTM)28.116.10
EV-to-Sales (TTM)12.361.12
EV-to-Free Cash Flow (TTM)36.256.64

Dividend Comparison

ERIC stands out with a 3.28% dividend yield—around 95% above ADI’s 1.69%—highlighting its emphasis on generous payouts.

SymbolADIERIC
Dividend Yield (TTM)1.69%3.28%

Financial Strength Metrics Comparison

Explore the financial strength details for ADI and ERIC in the table below.

SymbolADIERIC
Current Ratio (TTM)1.931.09
Quick Ratio (TTM)1.430.88
Debt-to-Equity Ratio (TTM)0.220.49
Debt-to-Assets Ratio (TTM)0.160.15
Interest Coverage Ratio (TTM)6.096.76