CLS vs. ERIC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CLS and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CLS 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 | CLS | ERIC |
|---|---|---|
| Company Name | Celestica Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | Canada | Sweden |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Electronic Equipment, Instruments & Components | Communications Equipment |
| Market Capitalization | 23.49 billion USD | 25.46 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 30, 1998 | August 24, 1981 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CLS 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 | CLS | ERIC |
|---|---|---|
| 5-Day Price Return | 7.73% | 2.37% |
| 13-Week Price Return | 126.89% | -8.82% |
| 26-Week Price Return | 43.11% | -11.85% |
| 52-Week Price Return | 335.42% | 4.50% |
| Month-to-Date Return | 6.23% | 2.83% |
| Year-to-Date Return | 121.82% | -18.38% |
| 10-Day Avg. Volume | 1.06M | 4.03M |
| 3-Month Avg. Volume | 0.87M | 6.66M |
| 3-Month Volatility | 54.67% | 27.46% |
| Beta | 2.98 | 0.80 |
Profitability
Return on Equity (TTM)
CLS
30.66%
Electronic Equipment, Instruments & Components Industry
- Max
- 29.99%
- Q3
- 15.78%
- Median
- 9.05%
- Q1
- 5.63%
- Min
- -9.55%
CLS’s Return on Equity of 30.66% is exceptionally high, placing it well beyond the typical range for the Electronic Equipment, Instruments & Components industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
ERIC
19.57%
Communications Equipment Industry
- Max
- 32.05%
- Q3
- 19.58%
- Median
- 11.77%
- Q1
- 2.23%
- Min
- -11.93%
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)
CLS
5.09%
Electronic Equipment, Instruments & Components Industry
- Max
- 25.55%
- Q3
- 12.80%
- Median
- 7.58%
- Q1
- 3.09%
- Min
- -8.70%
CLS’s Net Profit Margin of 5.09% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.
ERIC
7.04%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 14.32%
- Median
- 5.31%
- Q1
- 1.45%
- Min
- -12.72%
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)
CLS
7.01%
Electronic Equipment, Instruments & Components Industry
- Max
- 30.04%
- Q3
- 16.04%
- Median
- 9.75%
- Q1
- 4.27%
- Min
- -12.63%
CLS’s Operating Profit Margin of 7.01% is around the midpoint for the Electronic Equipment, Instruments & Components industry, indicating that its efficiency in managing core business operations is typical for the sector.
ERIC
10.60%
Communications Equipment Industry
- Max
- 42.27%
- Q3
- 18.90%
- Median
- 6.21%
- Q1
- 2.97%
- Min
- -20.72%
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 | CLS | ERIC |
|---|---|---|
| Return on Equity (TTM) | 30.66% | 19.57% |
| Return on Assets (TTM) | 8.98% | 6.22% |
| Net Profit Margin (TTM) | 5.09% | 7.04% |
| Operating Profit Margin (TTM) | 7.01% | 10.60% |
| Gross Profit Margin (TTM) | 11.36% | 47.18% |
Financial Strength
Current Ratio (MRQ)
CLS
1.44
Electronic Equipment, Instruments & Components Industry
- Max
- 4.43
- Q3
- 2.88
- Median
- 2.05
- Q1
- 1.52
- Min
- 0.64
CLS’s Current Ratio of 1.44 falls into the lower quartile for the Electronic Equipment, Instruments & Components 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
Communications Equipment Industry
- Max
- 1.72
- Q3
- 1.72
- Median
- 1.46
- Q1
- 1.18
- Min
- 0.93
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)
CLS
0.50
Electronic Equipment, Instruments & Components Industry
- Max
- 1.14
- Q3
- 0.54
- Median
- 0.34
- Q1
- 0.11
- Min
- 0.00
CLS’s Debt-to-Equity Ratio of 0.50 is typical for the Electronic Equipment, Instruments & Components industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
ERIC
0.50
Communications Equipment Industry
- Max
- 1.55
- Q3
- 0.92
- Median
- 0.55
- Q1
- 0.30
- 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)
CLS
36.72
Electronic Equipment, Instruments & Components Industry
- Max
- 101.00
- Q3
- 43.88
- Median
- 13.27
- Q1
- 3.73
- Min
- -18.73
CLS’s Interest Coverage Ratio of 36.72 is positioned comfortably within the norm for the Electronic Equipment, Instruments & Components industry, indicating a standard and healthy capacity to cover its interest payments.
ERIC
3.82
Communications Equipment Industry
- Max
- 181.73
- Q3
- 113.63
- Median
- 7.59
- Q1
- 3.82
- Min
- -5.39
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 | CLS | ERIC |
|---|---|---|
| Current Ratio (MRQ) | 1.44 | 1.09 |
| Quick Ratio (MRQ) | 0.86 | 0.86 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.50 |
| Interest Coverage Ratio (TTM) | 36.72 | 3.82 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CLS
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 4.86%
- Q3
- 2.53%
- Median
- 1.28%
- Q1
- 0.16%
- Min
- 0.00%
CLS 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
3.79%
Communications Equipment Industry
- Max
- 3.88%
- Q3
- 2.75%
- Median
- 0.93%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.79%, 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)
CLS
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 161.37%
- Q3
- 67.12%
- Median
- 34.46%
- Q1
- 3.82%
- Min
- 0.00%
CLS 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
- 55.91%
- Median
- 28.42%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Payout Ratio of 70.91% is in the upper quartile for the Communications Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | CLS | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.79% |
| Dividend Payout Ratio (TTM) | 0.00% | 70.91% |
Valuation
Price-to-Earnings Ratio (TTM)
CLS
45.70
Electronic Equipment, Instruments & Components Industry
- Max
- 73.87
- Q3
- 41.11
- Median
- 25.31
- Q1
- 18.58
- Min
- 8.59
A P/E Ratio of 45.70 places CLS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
ERIC
14.23
Communications Equipment Industry
- Max
- 57.30
- Q3
- 47.92
- Median
- 27.50
- Q1
- 17.89
- Min
- 13.89
In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 14.23 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CLS
2.32
Electronic Equipment, Instruments & Components Industry
- Max
- 6.74
- Q3
- 3.49
- Median
- 2.03
- Q1
- 1.16
- Min
- 0.11
CLS’s P/S Ratio of 2.32 aligns with the market consensus for the Electronic Equipment, Instruments & Components industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ERIC
1.00
Communications Equipment Industry
- Max
- 11.03
- Q3
- 5.53
- Median
- 2.20
- Q1
- 0.99
- Min
- 0.40
ERIC’s P/S Ratio of 1.00 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)
CLS
10.12
Electronic Equipment, Instruments & Components Industry
- Max
- 6.45
- Q3
- 3.49
- Median
- 1.98
- Q1
- 1.31
- Min
- 0.35
At 10.12, CLS’s P/B Ratio is at an extreme premium to the Electronic Equipment, Instruments & Components industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
ERIC
3.15
Communications Equipment Industry
- Max
- 9.66
- Q3
- 5.60
- Median
- 3.73
- Q1
- 2.67
- Min
- 0.30
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 | CLS | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 45.70 | 14.23 |
| Price-to-Sales Ratio (TTM) | 2.32 | 1.00 |
| Price-to-Book Ratio (MRQ) | 10.12 | 3.15 |
| Price-to-Free Cash Flow Ratio (TTM) | 63.72 | 6.35 |