EA vs. ERIC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at EA and ERIC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
EA 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 | EA | ERIC |
|---|---|---|
| Company Name | Electronic Arts Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | United States | Sweden |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Entertainment | Communications Equipment |
| Market Capitalization | 50.19 billion USD | 31.33 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | September 20, 1989 | August 24, 1981 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of EA 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 | EA | ERIC |
|---|---|---|
| 5-Day Price Return | 0.03% | -2.52% |
| 13-Week Price Return | 17.24% | 19.93% |
| 26-Week Price Return | 33.65% | 6.94% |
| 52-Week Price Return | 21.06% | 2.84% |
| Month-to-Date Return | 0.53% | -5.41% |
| Year-to-Date Return | 37.47% | 0.82% |
| 10-Day Avg. Volume | 2.04M | 4.85M |
| 3-Month Avg. Volume | 3.31M | 5.91M |
| 3-Month Volatility | 32.69% | 40.60% |
| Beta | 0.73 | 0.73 |
Profitability
Return on Equity (TTM)
EA
13.68%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- Min
- -17.95%
EA’s Return on Equity of 13.68% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
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)
EA
12.14%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
EA’s Net Profit Margin of 12.14% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
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)
EA
17.06%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
EA’s Operating Profit Margin of 17.06% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | EA | ERIC |
|---|---|---|
| Return on Equity (TTM) | 13.68% | 26.66% |
| Return on Assets (TTM) | 7.17% | 8.77% |
| Net Profit Margin (TTM) | 12.14% | 10.26% |
| Operating Profit Margin (TTM) | 17.06% | 14.74% |
| Gross Profit Margin (TTM) | 78.79% | 47.62% |
Financial Strength
Current Ratio (MRQ)
EA
0.84
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- Min
- 0.38
EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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)
EA
0.31
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- Min
- 0.00
EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment 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)
EA
190.43
Entertainment Industry
- Max
- 62.11
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.
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 | EA | ERIC |
|---|---|---|
| Current Ratio (MRQ) | 0.84 | 1.17 |
| Quick Ratio (MRQ) | 0.84 | 0.94 |
| Debt-to-Equity Ratio (MRQ) | 0.31 | 0.43 |
| Interest Coverage Ratio (TTM) | 190.43 | 3.82 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
EA
0.39%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Yield of 0.39% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.
ERIC
3.06%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Yield of 3.06% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
EA
21.92%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Payout Ratio of 21.92% is within the typical range for the Entertainment 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 | EA | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.39% | 3.06% |
| Dividend Payout Ratio (TTM) | 21.92% | 45.50% |
Valuation
Price-to-Earnings Ratio (TTM)
EA
56.64
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
A P/E Ratio of 56.64 places EA in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
ERIC
12.35
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 12.35 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
EA
6.88
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
EA’s P/S Ratio of 6.88 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ERIC
1.27
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
ERIC’s P/S Ratio of 1.27 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)
EA
8.38
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
EA’s P/B Ratio of 8.38 is within the conventional range for the Entertainment 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 | EA | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 56.64 | 12.35 |
| Price-to-Sales Ratio (TTM) | 6.88 | 1.27 |
| Price-to-Book Ratio (MRQ) | 8.38 | 2.55 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.35 | 10.01 |