Seek Returns logo

ERIC vs. MANH: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ERIC and MANH, 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, MANH is a standard domestic listing.

SymbolERICMANH
Company NameTelefonaktiebolaget LM Ericsson (publ)Manhattan Associates, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSoftware
Market Capitalization32.45 billion USD10.57 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 24, 1981April 23, 1998
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of ERIC and MANH 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.

ERIC vs. MANH: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolERICMANH
5-Day Price Return0.65%1.01%
13-Week Price Return26.48%-17.02%
26-Week Price Return13.56%-8.85%
52-Week Price Return6.36%-37.98%
Month-to-Date Return-2.96%-2.11%
Year-to-Date Return3.43%-34.05%
10-Day Avg. Volume5.25M0.57M
3-Month Avg. Volume6.46M0.58M
3-Month Volatility40.31%28.88%
Beta0.731.03

Profitability

Return on Equity (TTM)

ERIC

26.66%

Communications Equipment Industry

Max
31.28%
Q3
24.67%
Median
13.12%
Q1
4.60%
Min
-12.73%

In the upper quartile for the Communications Equipment industry, ERIC’s Return on Equity of 26.66% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MANH

76.32%

Software Industry

Max
65.88%
Q3
22.54%
Median
10.46%
Q1
-6.54%
Min
-41.05%

MANH’s Return on Equity of 76.32% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ERIC vs. MANH: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Software industry benchmarks.

Net Profit Margin (TTM)

ERIC

10.26%

Communications Equipment Industry

Max
28.72%
Q3
14.02%
Median
5.41%
Q1
2.50%
Min
-13.11%

ERIC’s Net Profit Margin of 10.26% 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.

MANH

20.25%

Software Industry

Max
53.50%
Q3
20.30%
Median
9.60%
Q1
-4.98%
Min
-41.00%

MANH’s Net Profit Margin of 20.25% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

ERIC vs. MANH: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Operating Profit Margin (TTM)

ERIC

14.74%

Communications Equipment Industry

Max
33.69%
Q3
15.81%
Median
6.02%
Q1
3.00%
Min
-4.94%

ERIC’s Operating Profit Margin of 14.74% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

MANH

25.64%

Software Industry

Max
61.99%
Q3
23.67%
Median
10.93%
Q1
-3.57%
Min
-40.19%

An Operating Profit Margin of 25.64% places MANH in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ERIC vs. MANH: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Profitability at a Glance

SymbolERICMANH
Return on Equity (TTM)26.66%76.32%
Return on Assets (TTM)8.77%29.00%
Net Profit Margin (TTM)10.26%20.25%
Operating Profit Margin (TTM)14.74%25.64%
Gross Profit Margin (TTM)47.62%56.54%

Financial Strength

Current Ratio (MRQ)

ERIC

1.17

Communications Equipment Industry

Max
3.28
Q3
2.10
Median
1.52
Q1
1.17
Min
0.91

ERIC’s Current Ratio of 1.17 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

MANH

1.31

Software Industry

Max
4.01
Q3
2.27
Median
1.50
Q1
1.03
Min
0.25

MANH’s Current Ratio of 1.31 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

ERIC vs. MANH: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ERIC

0.43

Communications Equipment Industry

Max
1.44
Q3
0.96
Median
0.43
Q1
0.21
Min
0.00

ERIC’s Debt-to-Equity Ratio of 0.43 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.

MANH

0.00

Software Industry

Max
2.04
Q3
0.86
Median
0.29
Q1
0.00
Min
0.00

MANH’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ERIC vs. MANH: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Interest Coverage Ratio (TTM)

ERIC

3.82

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
8.92
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.

MANH

35.00

Software Industry

Max
89.65
Q3
33.82
Median
1.59
Q1
-10.48
Min
-71.23

MANH’s Interest Coverage Ratio of 35.00 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ERIC vs. MANH: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Financial Strength at a Glance

SymbolERICMANH
Current Ratio (MRQ)1.171.31
Quick Ratio (MRQ)0.941.23
Debt-to-Equity Ratio (MRQ)0.430.00
Interest Coverage Ratio (TTM)3.8235.00

Growth

Revenue Growth

ERIC vs. MANH: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ERIC vs. MANH: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ERIC

2.99%

Communications Equipment Industry

Max
2.99%
Q3
2.30%
Median
0.91%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.99%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

MANH

0.00%

Software Industry

Max
0.34%
Q3
0.17%
Median
0.00%
Q1
0.00%
Min
0.00%

MANH 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.

ERIC vs. MANH: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

ERIC

45.50%

Communications Equipment Industry

Max
111.16%
Q3
61.16%
Median
30.78%
Q1
0.00%
Min
0.00%

ERIC’s Dividend Payout Ratio of 45.50% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MANH

0.00%

Software Industry

Max
12.76%
Q3
6.56%
Median
0.00%
Q1
0.00%
Min
0.00%

MANH 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.

ERIC vs. MANH: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend at a Glance

SymbolERICMANH
Dividend Yield (TTM)2.99%0.00%
Dividend Payout Ratio (TTM)45.50%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

12.67

Communications Equipment Industry

Max
74.67
Q3
56.42
Median
31.00
Q1
15.93
Min
3.89

In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 12.67 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MANH

49.72

Software Industry

Max
142.78
Q3
72.24
Median
36.21
Q1
24.24
Min
4.55

MANH’s P/E Ratio of 49.72 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ERIC vs. MANH: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

ERIC

1.30

Communications Equipment Industry

Max
11.84
Q3
5.68
Median
2.55
Q1
1.24
Min
0.40

ERIC’s P/S Ratio of 1.30 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.

MANH

10.07

Software Industry

Max
20.79
Q3
12.71
Median
6.75
Q1
4.56
Min
0.87

MANH’s P/S Ratio of 10.07 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ERIC vs. MANH: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

ERIC

2.55

Communications Equipment Industry

Max
6.02
Q3
6.01
Median
3.83
Q1
2.41
Min
0.42

ERIC’s P/B Ratio of 2.55 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.

MANH

40.08

Software Industry

Max
30.49
Q3
14.84
Median
8.09
Q1
4.32
Min
0.38

At 40.08, MANH’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ERIC vs. MANH: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Valuation at a Glance

SymbolERICMANH
Price-to-Earnings Ratio (TTM)12.6749.72
Price-to-Sales Ratio (TTM)1.3010.07
Price-to-Book Ratio (MRQ)2.5540.08
Price-to-Free Cash Flow Ratio (TTM)10.2732.23