CFLT vs. ERIC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CFLT and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CFLT 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 | CFLT | ERIC |
|---|---|---|
| Company Name | Confluent, Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | United States | Sweden |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Communications Equipment |
| Market Capitalization | 7.00 billion USD | 28.14 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 24, 2021 | August 24, 1981 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CFLT 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 | CFLT | ERIC |
|---|---|---|
| 5-Day Price Return | 0.94% | 3.31% |
| 13-Week Price Return | -22.81% | -4.13% |
| 26-Week Price Return | -13.40% | -1.08% |
| 52-Week Price Return | 6.17% | 2.37% |
| Month-to-Date Return | 2.53% | 0.90% |
| Year-to-Date Return | -27.40% | -12.62% |
| 10-Day Avg. Volume | 5.79M | 6.05M |
| 3-Month Avg. Volume | 7.34M | 5.60M |
| 3-Month Volatility | 75.66% | 26.46% |
| Beta | 0.96 | 0.78 |
Profitability
Return on Equity (TTM)
CFLT
-31.29%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
CFLT has a negative Return on Equity of -31.29%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
ERIC
19.57%
Communications Equipment Industry
- Max
- 32.30%
- Q3
- 20.90%
- Median
- 9.10%
- Q1
- 4.29%
- Min
- -13.50%
ERIC’s Return on Equity of 19.57% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CFLT
-29.27%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
CFLT has a negative Net Profit Margin of -29.27%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
ERIC
7.04%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 12.56%
- Median
- 5.62%
- Q1
- 2.50%
- Min
- -3.09%
ERIC’s Net Profit Margin of 7.04% 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)
CFLT
-37.29%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
CFLT has a negative Operating Profit Margin of -37.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
ERIC
10.60%
Communications Equipment Industry
- Max
- 25.23%
- Q3
- 13.72%
- Median
- 6.44%
- Q1
- 3.00%
- Min
- -10.95%
ERIC’s Operating Profit Margin of 10.60% 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 | CFLT | ERIC |
|---|---|---|
| Return on Equity (TTM) | -31.29% | 19.57% |
| Return on Assets (TTM) | -11.52% | 6.22% |
| Net Profit Margin (TTM) | -29.27% | 7.04% |
| Operating Profit Margin (TTM) | -37.29% | 10.60% |
| Gross Profit Margin (TTM) | 74.22% | 47.18% |
Financial Strength
Current Ratio (MRQ)
CFLT
3.98
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
CFLT’s Current Ratio of 3.98 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
ERIC
1.09
Communications Equipment Industry
- Max
- 3.33
- Q3
- 2.13
- Median
- 1.55
- Q1
- 1.15
- Min
- 0.91
ERIC’s Current Ratio of 1.09 falls into the lower quartile for the Communications 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 (MRQ)
CFLT
1.03
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
CFLT’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.03. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
ERIC
0.50
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.86
- Median
- 0.53
- Q1
- 0.22
- Min
- 0.00
ERIC’s Debt-to-Equity Ratio of 0.50 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)
CFLT
-87.07
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
CFLT has a negative Interest Coverage Ratio of -87.07. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
ERIC
3.82
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 7.59
- 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 | CFLT | ERIC |
|---|---|---|
| Current Ratio (MRQ) | 3.98 | 1.09 |
| Quick Ratio (MRQ) | 3.83 | 0.86 |
| Debt-to-Equity Ratio (MRQ) | 1.03 | 0.50 |
| Interest Coverage Ratio (TTM) | -87.07 | 3.82 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CFLT
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CFLT 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
3.54%
Communications Equipment Industry
- Max
- 8.13%
- Q3
- 3.29%
- Median
- 0.94%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.54%, 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)
CFLT
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CFLT 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
70.91%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 70.91%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Payout Ratio of 70.91% 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 | CFLT | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.54% |
| Dividend Payout Ratio (TTM) | 0.00% | 70.91% |
Valuation
Price-to-Earnings Ratio (TTM)
CFLT
--
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
P/E Ratio data for CFLT is currently unavailable.
ERIC
15.23
Communications Equipment Industry
- Max
- 103.74
- Q3
- 61.65
- Median
- 26.20
- Q1
- 18.12
- Min
- 4.19
In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 15.23 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CFLT
6.57
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
CFLT’s P/S Ratio of 6.57 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ERIC
1.07
Communications Equipment Industry
- Max
- 6.86
- Q3
- 6.24
- Median
- 2.44
- Q1
- 1.02
- Min
- 0.48
ERIC’s P/S Ratio of 1.07 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)
CFLT
7.98
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
CFLT’s P/B Ratio of 7.98 is within the conventional range for the Software 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
3.15
Communications Equipment Industry
- Max
- 6.28
- Q3
- 5.73
- Median
- 3.32
- Q1
- 2.02
- Min
- 0.42
ERIC’s P/B Ratio of 3.15 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 | CFLT | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 15.23 |
| Price-to-Sales Ratio (TTM) | 6.57 | 1.07 |
| Price-to-Book Ratio (MRQ) | 7.98 | 3.15 |
| Price-to-Free Cash Flow Ratio (TTM) | 141.40 | 6.79 |