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ERIC vs. HPQ: Telefonaktiebolaget LM Ericsson vs. HP Stock Comparison

How do Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ) 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 HP (HPQ) both fall under the Technology Hardware & Equipment industry group, but ERIC is classified in Communications Equipment while HPQ is classified in Technology Hardware, Storage & Peripherals.

HP (HPQ) 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 HP (HPQ)
Profile ItemERICHPQ
NameTelefonaktiebolaget LM Ericsson Sponsored ADRHP Inc.
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 USD25.66 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 24, 1981January 2, 1962
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

ERIC
HPQ
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ), 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 HP (HPQ). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ). 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 HP (HPQ)
MetricERICHPQ
Total Return (1Y)11.58%15.35%
Total Return (3Y, Annualized)36.47%6.50%
Total Return (5Y, Annualized)2.71%1.86%

Risk Profile

Drawdown History

ERIC
HPQ
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ), 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 HP (HPQ). 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 HP (HPQ)
MetricERICHPQ
Volatility (1Y, Annualized)36.32%47.36%
Beta (5Y)0.961.18
Max Drawdown (5Y)-62.81%-51.23%
Avg. Volume (3M)9.73M14.43M

Risk-Adjusted Performance

Risk-Return Positioning

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ERIC and HPQ 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 HP (HPQ)
MetricERICHPQ
Sharpe Ratio (1Y)0.200.23
Sortino Ratio (1Y)0.290.38

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Telefonaktiebolaget LM Ericsson (ERIC) earns 18.09% on shareholders’ equity, ranked against its industry; HP (HPQ) has no ROE this period.

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%

HPQ

Technology Hardware & Equipment industry group

--

Max
42.47%
Q3
19.13%
Median
11.00%
Q1
1.63%
Min
-20.62%
HPQ
--
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): HPQ does not report ROE, so it has no value marker; ERIC is benchmarked against the Technology Hardware & Equipment industry group.

Net Margin (TTM)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 8.36% and HP (HPQ) at 4.14% 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%

HPQ

Technology Hardware & Equipment industry group

4.14%

Max
27.60%
Q3
11.66%
HPQ
4.14%
Median
4.08%
Q1
0.00%
Min
-11.02%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their net margin against the Technology Hardware & Equipment industry group benchmark.

Operating Margin (TTM)

HP (HPQ) at 5.40% 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%

HPQ

Technology Hardware & Equipment industry group

5.40%

Max
36.27%
Q3
18.36%
Median
8.84%
HPQ
5.40%
Q1
1.46%
Min
-21.39%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their operating margin against the Technology Hardware & Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ)
MetricERICHPQ
ROE (TTM)18.09%--
ROA (TTM)7.07%5.63%
Net Margin (TTM)8.36%4.14%
Operating Margin (TTM)0.00%5.40%
Gross Margin (TTM)48.01%19.66%

Growth

Revenue Growth

Both Telefonaktiebolaget LM Ericsson (ERIC) at -4.52% and HP (HPQ) at 3.24% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their Revenue Growth across different time periods.

EPS Growth

Telefonaktiebolaget LM Ericsson (ERIC) at 85,000.00% clears its industry range for EPS growth, a much stronger earnings trajectory than HP (HPQ) at -5.69%, which is closer to a typical peer reading.

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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ)
MetricERICHPQ
Revenue Growth (YoY)-4.52%3.24%
Revenue Growth (3Y CAGR)-4.48%-4.21%
EPS Growth (YoY)85,000.00%-5.69%
EPS Growth (3Y CAGR)14.83%-4.58%

Financial Strength

Current Ratio (MRQ)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 1.16 and HP (HPQ) at 0.79 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

HPQ

Technology Hardware & Equipment industry group

0.79

Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
HPQ
0.79
Min
0.17
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their current ratio against the Technology Hardware & Equipment industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Telefonaktiebolaget LM Ericsson (ERIC) carries debt-to-equity ratio of 0.41 against its industry range, while HP (HPQ) reports no figure this period.

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

HPQ

Technology Hardware & Equipment industry group

--

Max
1.76
Q3
0.78
Median
0.24
Q1
0.04
Min
0.01
HPQ
--
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): HPQ does not report debt-to-equity ratio, so it has no value marker; ERIC is benchmarked against the Technology Hardware & Equipment industry group.

Financial Strength Metrics

Financial strength metrics for Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ)
MetricERICHPQ
Current Ratio (MRQ)1.160.79
Debt / Equity (MRQ)0.41--
Net Debt / EBITDA--1.33

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 HP (HPQ) reports a yield of 4.04%, 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%

HPQ

Technology Hardware & Equipment industry group

4.04%

HPQ
4.04%
Max
0.73%
Q3
0.31%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their dividend yield against the Technology Hardware & Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 51.66% and HP (HPQ) at 45.40% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

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%

HPQ

Technology Hardware & Equipment industry group

45.40%

HPQ
45.40%
Max
32.27%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): A comparison of their payout ratio against the Technology Hardware & Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Telefonaktiebolaget LM Ericsson (ERIC) and HP (HPQ)
MetricERICHPQ
Dividend Yield (TTM)0.00%4.04%
Dividend Payout Ratio (TTM)51.66%45.40%

Valuation

P/E Ratio (TTM)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 16.55 and HP (HPQ) at 10.86 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.

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

HPQ

Technology Hardware & Equipment industry group

10.86

Max
69.48
Q3
41.02
Median
26.39
Q1
19.36
HPQ
10.86
Min
6.07
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): 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 HP (HPQ), whose P/S ratio of 0.43 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
--

HPQ

Technology Hardware & Equipment industry group

0.43

Max
11.30
Q3
5.82
Median
2.56
Q1
1.05
HPQ
0.43
Min
0.00
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): ERIC does not report P/S ratio, so it has no value marker; HPQ is benchmarked against the Technology Hardware & Equipment industry group.

P/B Ratio (MRQ)

HP (HPQ) reports a negative P/B ratio of -279.02, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Telefonaktiebolaget LM Ericsson (ERIC) reports 0.33, ranking against industry peers normally.

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

HPQ

Technology Hardware & Equipment industry group

-279.02

Max
10.75
Q3
5.52
Median
3.17
Q1
1.79
Min
0.33
HPQ
-279.02
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Telefonaktiebolaget LM Ericsson (ERIC) vs. HP (HPQ): 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 HP (HPQ)
MetricERICHPQ
P/E Ratio (TTM)16.5510.86
P/S Ratio (TTM)--0.43
P/B Ratio (MRQ)0.33-279.02
Free Cash Flow Yield (TTM)86.49%13.21%