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ERIC vs. HPE: Telefonaktiebolaget LM Ericsson vs. Hewlett Packard Enterprise Stock Comparison

How do Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE) both fall under the Technology Hardware & Equipment industry group, but ERIC is classified in Communications Equipment while HPE is classified in Technology Hardware, Storage & Peripherals.

Hewlett Packard Enterprise (HPE) trades as ordinary local shares, while Telefonaktiebolaget LM Ericsson (ERIC) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
Profile ItemERICHPE
NameTelefonaktiebolaget LM Ericsson Sponsored ADRHewlett Packard Enterprise Company
Country/RegionSwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupTechnology Hardware & EquipmentTechnology Hardware & Equipment
GICS IndustryCommunications EquipmentTechnology Hardware, Storage & Peripherals
GICS Sub-IndustryCommunications EquipmentTechnology Hardware, Storage & Peripherals
Market Capitalization33.25 billion USD59.43 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 24, 1981October 19, 2015
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

ERIC
HPE
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Total Return (1Y)11.58%110.12%
Total Return (3Y, Annualized)36.47%49.38%
Total Return (5Y, Annualized)2.71%28.98%

Risk Profile

Drawdown History

ERIC
HPE
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Volatility (1Y, Annualized)36.32%61.60%
Beta (5Y)0.961.49
Max Drawdown (5Y)-62.81%-48.36%
Avg. Volume (3M)9.73M20.47M

Risk-Adjusted Performance

Risk-Return Positioning

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ERIC and HPE are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Sharpe Ratio (1Y)0.201.72
Sortino Ratio (1Y)0.292.76

Profitability

ROE (TTM)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 18.09% and Hewlett Packard Enterprise (HPE) at 10.94% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

ERIC

Technology Hardware & Equipment industry group

18.09%

Max
42.47%
Q3
19.13%
ERIC
18.09%
Median
11.00%
Q1
1.63%
Min
-20.62%

HPE

Technology Hardware & Equipment industry group

10.94%

Max
42.47%
Q3
19.13%
Median
11.00%
HPE
10.94%
Q1
1.63%
Min
-20.62%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their ROE against the Technology Hardware & Equipment industry group benchmark.

Net Margin (TTM)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 8.36% and Hewlett Packard Enterprise (HPE) at 6.67% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

ERIC

Technology Hardware & Equipment industry group

8.36%

Max
27.60%
Q3
11.66%
ERIC
8.36%
Median
4.08%
Q1
0.00%
Min
-11.02%

HPE

Technology Hardware & Equipment industry group

6.67%

Max
27.60%
Q3
11.66%
HPE
6.67%
Median
4.08%
Q1
0.00%
Min
-11.02%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their net margin against the Technology Hardware & Equipment industry group benchmark.

Operating Margin (TTM)

Hewlett Packard Enterprise (HPE) at 12.56% runs core operations around its industry’s norm, while Telefonaktiebolaget LM Ericsson (ERIC) at 0.00% operates in the bottom quartile.

ERIC

Technology Hardware & Equipment industry group

0.00%

Max
36.27%
Q3
18.36%
Median
8.84%
Q1
1.46%
ERIC
0.00%
Min
-21.39%

HPE

Technology Hardware & Equipment industry group

12.56%

Max
36.27%
Q3
18.36%
HPE
12.56%
Median
8.84%
Q1
1.46%
Min
-21.39%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their operating margin against the Technology Hardware & Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
ROE (TTM)18.09%10.94%
ROA (TTM)7.07%2.64%
Net Margin (TTM)8.36%6.67%
Operating Margin (TTM)0.00%12.56%
Gross Margin (TTM)48.01%36.62%

Growth

Revenue Growth

Hewlett Packard Enterprise (HPE) at 13.84% is around its peer norm for revenue growth, while Telefonaktiebolaget LM Ericsson (ERIC) at -4.52% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their Revenue Growth across different time periods.

EPS Growth

Telefonaktiebolaget LM Ericsson (ERIC) at 85,000.00% delivers above-range EPS growth, while Hewlett Packard Enterprise (HPE) at -102.07% falls into the bottom quartile — a wide split in earnings momentum.

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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Revenue Growth (YoY)-4.52%13.84%
Revenue Growth (3Y CAGR)-4.48%6.37%
EPS Growth (YoY)85,000.00%-102.07%
EPS Growth (3Y CAGR)14.83%--

Financial Strength

Current Ratio (MRQ)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 1.16 and Hewlett Packard Enterprise (HPE) at 1.11 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

ERIC

Technology Hardware & Equipment industry group

1.16

Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
ERIC
1.16
Min
0.17

HPE

Technology Hardware & Equipment industry group

1.11

Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
HPE
1.11
Min
0.17
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their current ratio against the Technology Hardware & Equipment industry group benchmark.

Debt / Equity (MRQ)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 0.41 and Hewlett Packard Enterprise (HPE) at 0.76 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

ERIC

Technology Hardware & Equipment industry group

0.41

Max
1.76
Q3
0.78
ERIC
0.41
Median
0.24
Q1
0.04
Min
0.01

HPE

Technology Hardware & Equipment industry group

0.76

Max
1.76
Q3
0.78
HPE
0.76
Median
0.24
Q1
0.04
Min
0.01
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their debt-to-equity ratio against the Technology Hardware & Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Current Ratio (MRQ)1.161.11
Debt / Equity (MRQ)0.410.76
Net Debt / EBITDA--2.05

Dividends

Dividend Yield (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Hewlett Packard Enterprise (HPE) reports a yield of 1.26%, ranking against industry peers normally.

ERIC

Technology Hardware & Equipment industry group

0.00%

Max
0.73%
Q3
0.31%
ERIC
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

HPE

Technology Hardware & Equipment industry group

1.26%

HPE
1.26%
Max
0.73%
Q3
0.31%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their dividend yield against the Technology Hardware & Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Both pay out more than their industries’ typical bands, and ERIC more so: Hewlett Packard Enterprise (HPE) at 28.74% sits above the band, while Telefonaktiebolaget LM Ericsson (ERIC) at 51.66% exceeds every peer in its group.

ERIC

Technology Hardware & Equipment industry group

51.66%

ERIC
51.66%
Max
32.27%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%

HPE

Technology Hardware & Equipment industry group

28.74%

Max
32.27%
HPE
28.74%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their payout ratio against the Technology Hardware & Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
Dividend Yield (TTM)0.00%1.26%
Dividend Payout Ratio (TTM)51.66%28.74%

Valuation

P/E Ratio (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) at 16.55 sits in the cheaper P/E ratio quartile, while Hewlett Packard Enterprise (HPE) at 23.08 is closer to its industry’s usual earnings multiple — a discount for ERIC, though growth and earnings durability still matter.

ERIC

Technology Hardware & Equipment industry group

16.55

Max
69.48
Q3
41.02
Median
26.39
Q1
19.36
ERIC
16.55
Min
6.07

HPE

Technology Hardware & Equipment industry group

23.08

Max
69.48
Q3
41.02
Median
26.39
HPE
23.08
Q1
19.36
Min
6.07
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their P/E ratio against the Technology Hardware & Equipment industry group benchmark.

P/S Ratio (TTM)

A sales-based read is only available for Hewlett Packard Enterprise (HPE), whose P/S ratio of 1.42 ranks against industry peers; Telefonaktiebolaget LM Ericsson (ERIC) reports no figure this period.

ERIC

Technology Hardware & Equipment industry group

--

Max
11.30
Q3
5.82
Median
2.56
Q1
1.05
Min
0.00
ERIC
--

HPE

Technology Hardware & Equipment industry group

1.42

Max
11.30
Q3
5.82
Median
2.56
HPE
1.42
Q1
1.05
Min
0.00
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): ERIC does not report P/S ratio, so it has no value marker; HPE is benchmarked against the Technology Hardware & Equipment industry group.

P/B Ratio (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) at 0.33 sits in the lower P/B ratio quartile against book while Hewlett Packard Enterprise (HPE) at 2.24 is valued near its industry’s middle — ERIC is cheaper on assets, though weigh it against ROE and asset quality.

ERIC

Technology Hardware & Equipment industry group

0.33

Max
10.75
Q3
5.52
Median
3.17
Q1
1.79
ERIC
0.33
Min
0.33

HPE

Technology Hardware & Equipment industry group

2.24

Max
10.75
Q3
5.52
Median
3.17
HPE
2.24
Q1
1.79
Min
0.33
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Hewlett Packard Enterprise (HPE): A comparison of their P/B ratio against the Technology Hardware & Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Hewlett Packard Enterprise (HPE)
MetricERICHPE
P/E Ratio (TTM)16.5523.08
P/S Ratio (TTM)--1.42
P/B Ratio (MRQ)0.332.24
Free Cash Flow Yield (TTM)86.49%7.97%