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ERIC vs. LITE: Telefonaktiebolaget LM Ericsson vs. Lumentum Stock Comparison

How do Telefonaktiebolaget LM Ericsson (ERIC) and Lumentum (LITE) 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 Lumentum (LITE) are both classified in the Communications Equipment sub-industry within the broader Communications Equipment industry, placing them in the closest GICS peer bucket.

Lumentum (LITE) 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 Lumentum (LITE)
Profile ItemERICLITE
NameTelefonaktiebolaget LM Ericsson Sponsored ADRLumentum Holdings Inc.
Country/RegionSwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupTechnology Hardware & EquipmentTechnology Hardware & Equipment
GICS IndustryCommunications EquipmentCommunications Equipment
GICS Sub-IndustryCommunications EquipmentCommunications Equipment
Market Capitalization33.25 billion USD48.84 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateAugust 24, 1981July 23, 2015
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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Calendar-year total returns for Telefonaktiebolaget LM Ericsson (ERIC) and Lumentum (LITE). 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 Lumentum (LITE)
MetricERICLITE
Total Return (1Y)11.58%150.31%
Total Return (3Y, Annualized)36.47%147.76%
Total Return (5Y, Annualized)2.71%45.47%

Risk Profile

Drawdown History

ERIC
LITE
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE), 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 Lumentum (LITE). 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 Lumentum (LITE)
MetricERICLITE
Volatility (1Y, Annualized)36.32%101.27%
Beta (5Y)0.961.73
Max Drawdown (5Y)-62.81%-66.48%
Avg. Volume (3M)9.73M5.27M

Risk-Adjusted Performance

Risk-Return Positioning

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ERIC and LITE 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 Lumentum (LITE)
MetricERICLITE
Sharpe Ratio (1Y)0.201.44
Sortino Ratio (1Y)0.292.14

Profitability

ROE (TTM)

Lumentum (LITE) reports a negative ROE of -245.79%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Telefonaktiebolaget LM Ericsson (ERIC) reports 18.09%, ranking against industry peers normally.

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%

LITE

Technology Hardware & Equipment industry group

-245.79%

Max
42.47%
Q3
19.13%
Median
11.00%
Q1
1.63%
Min
-20.62%
LITE
-245.79%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): A comparison of their ROE against the Technology Hardware & Equipment industry group benchmark.

Net Margin (TTM)

Lumentum (LITE) reports a negative net margin of -175.78%, usually indicating a net loss over the period. Meanwhile Telefonaktiebolaget LM Ericsson (ERIC) reports 8.36%, ranking against industry peers normally.

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%

LITE

Technology Hardware & Equipment industry group

-175.78%

Max
27.60%
Q3
11.66%
Median
4.08%
Q1
0.00%
Min
-11.02%
LITE
-175.78%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): A comparison of their net margin against the Technology Hardware & Equipment industry group benchmark.

Operating Margin (TTM)

Lumentum (LITE) at 27.95% carries a top-quartile operating margin, 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%

LITE

Technology Hardware & Equipment industry group

27.95%

Max
36.27%
LITE
27.95%
Q3
18.36%
Median
8.84%
Q1
1.46%
Min
-21.39%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): A comparison of their operating margin against the Technology Hardware & Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Lumentum (LITE)
MetricERICLITE
ROE (TTM)18.09%-245.79%
ROA (TTM)7.07%9.19%
Net Margin (TTM)8.36%-175.78%
Operating Margin (TTM)0.00%27.95%
Gross Margin (TTM)48.01%47.98%

Growth

Revenue Growth

Lumentum (LITE) at 83.22% delivers above-range revenue growth, while Telefonaktiebolaget LM Ericsson (ERIC) at -4.52% falls into the bottom quartile — a wide split in revenue momentum.

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

EPS Growth

Telefonaktiebolaget LM Ericsson (ERIC) at 85,000.00% sits above its peer range for EPS growth; Lumentum (LITE) at -25,224.32% sits below its range, putting their earnings trajectories at opposite ends.

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

Growth Metrics

Growth metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Lumentum (LITE)
MetricERICLITE
Revenue Growth (YoY)-4.52%83.22%
Revenue Growth (3Y CAGR)-4.48%19.48%
EPS Growth (YoY)85,000.00%-25,224.32%
EPS Growth (3Y CAGR)14.83%--

Financial Strength

Current Ratio (MRQ)

Lumentum (LITE) at 1.61 keeps current ratio within its industry’s typical mid-range, while Telefonaktiebolaget LM Ericsson (ERIC) at 1.16 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ERIC.

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

LITE

Technology Hardware & Equipment industry group

1.61

Max
5.34
Q3
3.02
Median
1.95
LITE
1.61
Q1
1.32
Min
0.17
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): 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 Lumentum (LITE) at 0.31 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

LITE

Technology Hardware & Equipment industry group

0.31

Max
1.76
Q3
0.78
LITE
0.31
Median
0.24
Q1
0.04
Min
0.01
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): 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 Lumentum (LITE)
MetricERICLITE
Current Ratio (MRQ)1.161.61
Debt / Equity (MRQ)0.410.31
Net Debt / EBITDA---0.48

Dividends

Dividend Yield (TTM)

Neither Telefonaktiebolaget LM Ericsson (ERIC) nor Lumentum (LITE) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

LITE

Technology Hardware & Equipment industry group

0.00%

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

Dividend Payout Ratio (TTM)

Lumentum (LITE) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Telefonaktiebolaget LM Ericsson (ERIC) reports a payout of 51.66%, ranking against industry peers normally.

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%

LITE

Technology Hardware & Equipment industry group

0.00%

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

Dividend Metrics

Dividend metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Lumentum (LITE)
MetricERICLITE
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)51.66%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Telefonaktiebolaget LM Ericsson (ERIC) trades at 16.55 times trailing earnings, ranked against its peers, while Lumentum (LITE) has no P/E ratio this period.

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

LITE

Technology Hardware & Equipment industry group

--

Max
69.48
Q3
41.02
Median
26.39
Q1
19.36
Min
6.07
LITE
--
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): LITE does not report P/E ratio, so it has no value marker; ERIC is benchmarked against the Technology Hardware & Equipment industry group.

P/S Ratio (TTM)

A sales-based read is only available for Lumentum (LITE), whose P/S ratio of 13.05 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
--

LITE

Technology Hardware & Equipment industry group

13.05

LITE
13.05
Max
11.30
Q3
5.82
Median
2.56
Q1
1.05
Min
0.00
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): ERIC does not report P/S ratio, so it has no value marker; LITE is benchmarked against the Technology Hardware & Equipment industry group.

P/B Ratio (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) at 0.33 looks cheap against book in the lower P/B ratio quartile, while Lumentum (LITE) at 10.67 carries a premium in the upper quartile — a clear price-to-book gap.

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

LITE

Technology Hardware & Equipment industry group

10.67

Max
10.75
LITE
10.67
Q3
5.52
Median
3.17
Q1
1.79
Min
0.33
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Lumentum (LITE): 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 Lumentum (LITE)
MetricERICLITE
P/E Ratio (TTM)16.55--
P/S Ratio (TTM)--13.05
P/B Ratio (MRQ)0.3310.67
Free Cash Flow Yield (TTM)86.49%0.29%