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.
| Profile Item | ERIC | HPE |
|---|---|---|
| Name | Telefonaktiebolaget LM Ericsson Sponsored ADR | Hewlett Packard Enterprise Company |
| Country/Region | Sweden | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment | Technology Hardware, Storage & Peripherals |
| GICS Sub-Industry | Communications Equipment | Technology Hardware, Storage & Peripherals |
| Market Capitalization | 33.25 billion USD | 59.43 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 24, 1981 | October 19, 2015 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ERIC | HPE |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | ERIC | HPE |
|---|---|---|
| Volatility (1Y, Annualized) | 36.32% | 61.60% |
| Beta (5Y) | 0.96 | 1.49 |
| Max Drawdown (5Y) | -62.81% | -48.36% |
| Avg. Volume (3M) | 9.73M | 20.47M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ERIC | HPE |
|---|---|---|
| Sharpe Ratio (1Y) | 0.20 | 1.72 |
| Sortino Ratio (1Y) | 0.29 | 2.76 |
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%
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%
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%
Profitability Metrics
| Metric | ERIC | HPE |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | ERIC | HPE |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | ERIC | HPE |
|---|---|---|
| Current Ratio (MRQ) | 1.16 | 1.11 |
| Debt / Equity (MRQ) | 0.41 | 0.76 |
| 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%
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%
Dividend Metrics
| Metric | ERIC | HPE |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | ERIC | HPE |
|---|---|---|
| P/E Ratio (TTM) | 16.55 | 23.08 |
| P/S Ratio (TTM) | -- | 1.42 |
| P/B Ratio (MRQ) | 0.33 | 2.24 |
| Free Cash Flow Yield (TTM) | 86.49% | 7.97% |