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

Updated

Here’s a clear look at ALAB 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

ERIC stands out with 29.42 billion USD in market value—about 1.94× ALAB’s market cap of 15.20 billion USD.

With betas of 0.33 for ALAB and 0.44 for ERIC, both show similar volatility profiles relative to the overall market.

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

SymbolALABERIC
Company NameAstera Labs, Inc. Common StockTelefonaktiebolaget LM Ericsson (publ)
CountryUSSE
SectorTechnologyTechnology
IndustrySemiconductorsCommunication Equipment
CEOMr. Jitendra MohanMr. Anthony F. Bartolo
Price92.17 USD8.86 USD
Market Cap15.20 billion USD29.42 billion USD
Beta0.330.44
ExchangeNASDAQNASDAQ
IPO DateMarch 20, 2024August 24, 1981
ADRNoYes

Performance Comparison

This chart compares the performance of ALAB 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 ALAB and ERIC based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ALAB and ERIC both trade above a 100× earnings multiple (363.38 and 175.26), reflecting lofty growth narratives priced into their shares.
  • ERIC shows a negative forward PEG of -63.14, signaling expected earnings contraction, while ALAB at 10.90 maintains analysts’ projections for stable or improved profits.
SymbolALABERIC
Price-to-Earnings Ratio (P/E, TTM)363.38175.26
Forward PEG Ratio (TTM)10.90-63.14
Price-to-Sales Ratio (P/S, TTM)30.991.13
Price-to-Book Ratio (P/B, TTM)14.443.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)140.536.70
EV-to-EBITDA (TTM)-832.776.10
EV-to-Sales (TTM)30.811.12
EV-to-Free Cash Flow (TTM)139.736.64

Dividend Comparison

ALAB offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while ERIC provides a 3.28% dividend yield, giving investors a steady income stream.

SymbolALABERIC
Dividend Yield (TTM)0.00%3.28%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ALAB and ERIC, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ALAB shows “--” for interest coverage, hinting at negligible interest costs, whereas ERIC (at 6.76) covers its interest obligations.
SymbolALABERIC
Current Ratio (TTM)13.921.09
Quick Ratio (TTM)13.260.88
Debt-to-Equity Ratio (TTM)0.000.49
Debt-to-Assets Ratio (TTM)0.000.15
Interest Coverage Ratio (TTM)--6.76