AMAT vs. ERIC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMAT and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
AMAT is a standard domestic listing, while ERIC trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | AMAT | ERIC |
|---|---|---|
| Company Name | Applied Materials, Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | United States | Sweden |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Communications Equipment |
| Market Capitalization | 182.93 billion USD | 32.45 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | August 24, 1981 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of AMAT 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.
Historical Performance at a Glance
| Symbol | AMAT | ERIC |
|---|---|---|
| 5-Day Price Return | -3.86% | 0.65% |
| 13-Week Price Return | 39.72% | 26.48% |
| 26-Week Price Return | 30.62% | 13.56% |
| 52-Week Price Return | 23.64% | 6.36% |
| Month-to-Date Return | -3.04% | -2.96% |
| Year-to-Date Return | 38.97% | 3.43% |
| 10-Day Avg. Volume | 8.50M | 5.25M |
| 3-Month Avg. Volume | 7.96M | 6.46M |
| 3-Month Volatility | 49.05% | 40.31% |
| Beta | 1.69 | 0.73 |
Profitability
Return on Equity (TTM)
AMAT
35.91%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AMAT’s Return on Equity of 35.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ERIC
26.66%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
In the upper quartile for the Communications Equipment industry, ERIC’s Return on Equity of 26.66% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AMAT
24.67%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
A Net Profit Margin of 24.67% places AMAT in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
ERIC
10.26%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
ERIC’s Net Profit Margin of 10.26% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
AMAT
29.22%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
An Operating Profit Margin of 29.22% places AMAT in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ERIC
14.74%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
ERIC’s Operating Profit Margin of 14.74% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AMAT | ERIC |
|---|---|---|
| Return on Equity (TTM) | 35.91% | 26.66% |
| Return on Assets (TTM) | 20.15% | 8.77% |
| Net Profit Margin (TTM) | 24.67% | 10.26% |
| Operating Profit Margin (TTM) | 29.22% | 14.74% |
| Gross Profit Margin (TTM) | 48.67% | 47.62% |
Financial Strength
Current Ratio (MRQ)
AMAT
2.50
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
AMAT’s Current Ratio of 2.50 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
ERIC
1.17
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
ERIC’s Current Ratio of 1.17 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AMAT
0.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
AMAT’s Debt-to-Equity Ratio of 0.32 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
ERIC
0.43
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
ERIC’s Debt-to-Equity Ratio of 0.43 is typical for the Communications 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 (TTM)
AMAT
42.75
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
AMAT’s Interest Coverage Ratio of 42.75 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
ERIC
3.82
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
ERIC’s Interest Coverage Ratio of 3.82 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AMAT | ERIC |
|---|---|---|
| Current Ratio (MRQ) | 2.50 | 1.17 |
| Quick Ratio (MRQ) | 1.69 | 0.94 |
| Debt-to-Equity Ratio (MRQ) | 0.32 | 0.43 |
| Interest Coverage Ratio (TTM) | 42.75 | 3.82 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AMAT
0.75%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Yield of 0.75% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
ERIC
2.99%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.99%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
AMAT
19.73%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Payout Ratio of 19.73% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
ERIC
45.50%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Payout Ratio of 45.50% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMAT | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.75% | 2.99% |
| Dividend Payout Ratio (TTM) | 19.73% | 45.50% |
Valuation
Price-to-Earnings Ratio (TTM)
AMAT
25.73
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
AMAT’s P/E Ratio of 25.73 is within the middle range for the Semiconductors & Semiconductor Equipment 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
12.67
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 12.67 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
AMAT
6.35
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
AMAT’s P/S Ratio of 6.35 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ERIC
1.30
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
ERIC’s P/S Ratio of 1.30 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
AMAT
7.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
AMAT’s P/B Ratio of 7.83 is within the conventional range for the Semiconductors & Semiconductor 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.
ERIC
2.55
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
ERIC’s P/B Ratio of 2.55 is within the conventional range for the Communications 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 | AMAT | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.73 | 12.67 |
| Price-to-Sales Ratio (TTM) | 6.35 | 1.30 |
| Price-to-Book Ratio (MRQ) | 7.83 | 2.55 |
| Price-to-Free Cash Flow Ratio (TTM) | 30.92 | 10.27 |