ERIC vs. GFS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ERIC and GFS, 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, GFS is a standard domestic listing.
| Symbol | ERIC | GFS |
|---|---|---|
| Company Name | Telefonaktiebolaget LM Ericsson (publ) | GlobalFoundries Inc. |
| Country | Sweden | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 26.75 billion USD | 19.15 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 24, 1981 | October 28, 2021 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of ERIC and GFS 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 | ERIC | GFS |
|---|---|---|
| 5-Day Price Return | 0.70% | 8.11% |
| 13-Week Price Return | -4.75% | -6.18% |
| 26-Week Price Return | -6.96% | -7.51% |
| 52-Week Price Return | -1.09% | -12.48% |
| Month-to-Date Return | 3.37% | 7.34% |
| Year-to-Date Return | -13.40% | -16.48% |
| 10-Day Avg. Volume | 6.14M | 4.67M |
| 3-Month Avg. Volume | 5.55M | 2.37M |
| 3-Month Volatility | 26.42% | 40.78% |
| Beta | 0.78 | 1.52 |
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.
GFS
-1.03%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
GFS has a negative Return on Equity of -1.03%. 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.
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.
GFS
-1.68%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
GFS has a negative Net Profit Margin of -1.68%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
GFS
-2.47%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
GFS has a negative Operating Profit Margin of -2.47%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ERIC | GFS |
|---|---|---|
| Return on Equity (TTM) | 19.57% | -1.03% |
| Return on Assets (TTM) | 6.22% | -0.67% |
| Net Profit Margin (TTM) | 7.04% | -1.68% |
| Operating Profit Margin (TTM) | 10.60% | -2.47% |
| Gross Profit Margin (TTM) | 47.18% | 23.76% |
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.
GFS
2.63
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
GFS’s Current Ratio of 2.63 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
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.
GFS
0.15
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
GFS’s Debt-to-Equity Ratio of 0.15 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.
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.
GFS
29.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
GFS’s Interest Coverage Ratio of 29.37 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ERIC | GFS |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 2.63 |
| Quick Ratio (MRQ) | 0.86 | 1.92 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.15 |
| Interest Coverage Ratio (TTM) | 3.82 | 29.37 |
Growth
Revenue Growth
EPS Growth
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.
GFS
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
GFS 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.
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.
GFS
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
GFS 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.
Dividend at a Glance
| Symbol | ERIC | GFS |
|---|---|---|
| Dividend Yield (TTM) | 3.57% | 0.00% |
| Dividend Payout Ratio (TTM) | 70.91% | 0.00% |
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.
GFS
--
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
P/E Ratio data for GFS is currently unavailable.
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.
GFS
2.79
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, GFS’s P/S Ratio of 2.79 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
GFS
1.86
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
GFS’s P/B Ratio of 1.86 is in the lower quartile for the Semiconductors & Semiconductor Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ERIC | GFS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.10 | -- |
| Price-to-Sales Ratio (TTM) | 1.06 | 2.79 |
| Price-to-Book Ratio (MRQ) | 3.15 | 1.86 |
| Price-to-Free Cash Flow Ratio (TTM) | 6.73 | 19.63 |