ADSK vs. ERIC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADSK and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADSK’s market capitalization of 67.75 billion USD is substantially larger than ERIC’s 28.16 billion USD, indicating a significant difference in their market valuations.
ADSK’s beta of 1.45 points to significantly higher volatility compared to ERIC (beta: 0.44), suggesting ADSK has greater potential for both gains and losses relative to market movements.
ERIC is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADSK, on the other hand, is a domestic entity.
| Symbol | ADSK | ERIC |
|---|---|---|
| Company Name | Autodesk, Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | US | SE |
| Sector | Technology | Technology |
| Industry | Software - Application | Communication Equipment |
| CEO | Andrew Anagnost | Anthony F. Bartolo |
| Price | 316.66 USD | 8.54 USD |
| Market Cap | 67.75 billion USD | 28.16 billion USD |
| Beta | 1.45 | 0.44 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 28, 1985 | August 24, 1981 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ADSK and ERIC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ADSK
45.55%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
In the upper quartile for the Software - Application industry, ADSK’s Return on Equity of 45.55% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ERIC
1.84%
Communication Equipment Industry
- Max
- 30.07%
- Q3
- 8.07%
- Median
- 1.84%
- Q1
- -11.93%
- Min
- -31.65%
ERIC’s Return on Equity of 1.84% is on par with the norm for the Communication Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ADSK
16.53%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
In the upper quartile for the Software - Application industry, ADSK’s Return on Invested Capital of 16.53% signifies a highly effective use of its capital to generate profits when compared to its peers.
ERIC
-11.25%
Communication Equipment Industry
- Max
- 11.59%
- Q3
- 6.61%
- Median
- 2.97%
- Q1
- -2.58%
- Min
- -13.18%
ERIC has a negative Return on Invested Capital of -11.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
Net Profit Margin
ADSK
18.53%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 18.53% places ADSK in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
ERIC
0.65%
Communication Equipment Industry
- Max
- 23.65%
- Q3
- 9.21%
- Median
- 2.46%
- Q1
- -8.56%
- Min
- -29.87%
ERIC’s Net Profit Margin of 0.65% is aligned with the median group of its peers in the Communication Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ADSK
20.29%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 20.29% places ADSK in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ERIC
8.83%
Communication Equipment Industry
- Max
- 30.72%
- Q3
- 11.64%
- Median
- 5.79%
- Q1
- -2.28%
- Min
- -18.20%
ERIC’s Operating Profit Margin of 8.83% is around the midpoint for the Communication Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADSK | ERIC |
|---|---|---|
| Return on Equity (TTM) | 45.55% | 1.84% |
| Return on Assets (TTM) | 11.11% | 0.58% |
| Return on Invested Capital (TTM) | 16.53% | -11.25% |
| Net Profit Margin (TTM) | 18.53% | 0.65% |
| Operating Profit Margin (TTM) | 20.29% | 8.83% |
| Gross Profit Margin (TTM) | 90.53% | 45.56% |
Financial Strength
Current Ratio
ADSK
0.65
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
ADSK’s Current Ratio of 0.65 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
ERIC
1.09
Communication Equipment Industry
- Max
- 3.40
- Q3
- 2.59
- Median
- 1.62
- Q1
- 1.32
- Min
- 0.86
ERIC’s Current Ratio of 1.09 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ADSK
0.90
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
ADSK’s leverage is in the upper quartile of the Software - Application industry, with a Debt-to-Equity Ratio of 0.90. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
ERIC
0.49
Communication Equipment Industry
- Max
- 1.82
- Q3
- 1.00
- Median
- 0.53
- Q1
- 0.20
- Min
- 0.02
ERIC’s Debt-to-Equity Ratio of 0.49 is typical for the Communication Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ADSK
184.00
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
With an Interest Coverage Ratio of 184.00, ADSK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.
ERIC
6.76
Communication Equipment Industry
- Max
- 16.12
- Q3
- 9.22
- Median
- 2.52
- Q1
- -0.75
- Min
- -12.07
ERIC’s Interest Coverage Ratio of 6.76 is positioned comfortably within the norm for the Communication Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADSK | ERIC |
|---|---|---|
| Current Ratio (TTM) | 0.65 | 1.09 |
| Quick Ratio (TTM) | 0.65 | 0.88 |
| Debt-to-Equity Ratio (TTM) | 0.90 | 0.49 |
| Debt-to-Asset Ratio (TTM) | 0.22 | 0.15 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.35 | -0.05 |
| Interest Coverage Ratio (TTM) | 184.00 | 6.76 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADSK and ERIC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ADSK
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ADSK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
ERIC
3.39%
Communication Equipment Industry
- Max
- 4.72%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.39%, ERIC offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ADSK
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ADSK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
ERIC
573.48%
Communication Equipment Industry
- Max
- 91.96%
- Q3
- 26.44%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Payout Ratio of 573.48% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ADSK | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.39% |
| Dividend Payout Ratio (TTM) | 0.00% | 573.48% |
Valuation
Price-to-Earnings Ratio
ADSK
57.62
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
ADSK’s P/E Ratio of 57.62 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
ERIC
169.59
Communication Equipment Industry
- Max
- 44.37
- Q3
- 41.98
- Median
- 30.61
- Q1
- 23.44
- Min
- 2.14
At 169.59, ERIC’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communication Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ADSK
4.33
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
ADSK’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
ERIC
-64.58
Communication Equipment Industry
- Max
- 15.97
- Q3
- 6.99
- Median
- 2.78
- Q1
- 0.66
- Min
- 0.05
The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.
Price-to-Sales Ratio
ADSK
10.67
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
ADSK’s P/S Ratio of 10.67 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ERIC
1.10
Communication Equipment Industry
- Max
- 6.38
- Q3
- 3.88
- Median
- 2.17
- Q1
- 1.15
- Min
- 0.37
In the lower quartile for the Communication Equipment industry, ERIC’s P/S Ratio of 1.10 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
ADSK
25.89
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
ERIC
3.17
Communication Equipment Industry
- Max
- 14.42
- Q3
- 7.01
- Median
- 3.09
- Q1
- 1.38
- Min
- 0.41
ERIC’s P/B Ratio of 3.17 is within the conventional range for the Communication Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADSK | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 57.62 | 169.59 |
| Forward PEG Ratio (TTM) | 4.33 | -64.58 |
| Price-to-Sales Ratio (P/S, TTM) | 10.67 | 1.10 |
| Price-to-Book Ratio (P/B, TTM) | 25.89 | 3.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 42.18 | 6.52 |
| EV-to-EBITDA (TTM) | 45.70 | 5.94 |
| EV-to-Sales (TTM) | 10.76 | 1.09 |