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

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Here’s a clear look at ERIC and FTV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ERIC trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, FTV is a standard domestic listing.

SymbolERICFTV
Company NameTelefonaktiebolaget LM Ericsson (publ)Fortive Corporation
CountrySwedenUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustryCommunications EquipmentMachinery
Market Capitalization26.75 billion USD16.94 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 24, 1981July 5, 2016
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of ERIC and FTV 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.

ERIC vs. FTV: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolERICFTV
5-Day Price Return0.70%5.06%
13-Week Price Return-4.75%-5.79%
26-Week Price Return-6.96%-32.86%
52-Week Price Return-1.09%-36.55%
Month-to-Date Return3.37%2.22%
Year-to-Date Return-13.40%-33.23%
10-Day Avg. Volume6.14M3.76M
3-Month Avg. Volume5.55M3.96M
3-Month Volatility26.42%22.54%
Beta0.781.06

Profitability

Return on Equity (TTM)

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.

FTV

7.44%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

FTV’s Return on Equity of 7.44% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ERIC vs. FTV: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Net Profit Margin (TTM)

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.

FTV

12.51%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

A Net Profit Margin of 12.51% places FTV in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

ERIC vs. FTV: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Operating Profit Margin (TTM)

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.

FTV

17.22%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

An Operating Profit Margin of 17.22% places FTV in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ERIC vs. FTV: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Profitability at a Glance

SymbolERICFTV
Return on Equity (TTM)19.57%7.44%
Return on Assets (TTM)6.22%4.40%
Net Profit Margin (TTM)7.04%12.51%
Operating Profit Margin (TTM)10.60%17.22%
Gross Profit Margin (TTM)47.18%59.78%

Financial Strength

Current Ratio (MRQ)

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.

FTV

0.98

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

FTV’s Current Ratio of 0.98 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ERIC vs. FTV: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

FTV

0.46

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

FTV’s Debt-to-Equity Ratio of 0.46 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ERIC vs. FTV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

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.

FTV

6.04

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, FTV’s Interest Coverage Ratio of 6.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ERIC vs. FTV: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolERICFTV
Current Ratio (MRQ)1.090.98
Quick Ratio (MRQ)0.860.77
Debt-to-Equity Ratio (MRQ)0.500.46
Interest Coverage Ratio (TTM)3.826.04

Growth

Revenue Growth

ERIC vs. FTV: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ERIC vs. FTV: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ERIC

3.57%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.57%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

FTV

0.65%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

FTV’s Dividend Yield of 0.65% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ERIC vs. FTV: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

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.

FTV

14.22%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

FTV’s Dividend Payout Ratio of 14.22% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

ERIC vs. FTV: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Dividend at a Glance

SymbolERICFTV
Dividend Yield (TTM)3.57%0.65%
Dividend Payout Ratio (TTM)70.91%14.22%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

15.10

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 15.10 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

FTV

21.88

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

FTV’s P/E Ratio of 21.88 is within the middle range for the Machinery 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 vs. FTV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

ERIC

1.06

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

ERIC’s P/S Ratio of 1.06 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.

FTV

2.74

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

FTV’s P/S Ratio of 2.74 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ERIC vs. FTV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

FTV

2.34

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

FTV’s P/B Ratio of 2.34 is within the conventional range for the Machinery 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 vs. FTV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Machinery industry benchmarks.

Valuation at a Glance

SymbolERICFTV
Price-to-Earnings Ratio (TTM)15.1021.88
Price-to-Sales Ratio (TTM)1.062.74
Price-to-Book Ratio (MRQ)3.152.34
Price-to-Free Cash Flow Ratio (TTM)6.7312.14