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ERIC vs. MSI: Telefonaktiebolaget LM Ericsson vs. Motorola Stock Comparison

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

Motorola (MSI) 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 Motorola (MSI)
Profile ItemERICMSI
NameTelefonaktiebolaget LM Ericsson Sponsored ADRMotorola Solutions, 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 USD85.07 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 24, 1981January 2, 1962
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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Calendar-year total returns for Telefonaktiebolaget LM Ericsson (ERIC) and Motorola (MSI). 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 Motorola (MSI)
MetricERICMSI
Total Return (1Y)11.58%35.63%
Total Return (3Y, Annualized)36.47%20.55%
Total Return (5Y, Annualized)2.71%17.37%

Risk Profile

Drawdown History

ERIC
MSI
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI), 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 Motorola (MSI). 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 Motorola (MSI)
MetricERICMSI
Volatility (1Y, Annualized)36.32%25.11%
Beta (5Y)0.960.84
Max Drawdown (5Y)-62.81%-27.23%
Avg. Volume (3M)9.73M973.41K

Risk-Adjusted Performance

Risk-Return Positioning

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ERIC and MSI 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 Motorola (MSI)
MetricERICMSI
Sharpe Ratio (1Y)0.201.25
Sortino Ratio (1Y)0.291.90

Profitability

ROE (TTM)

Motorola (MSI) at 76.98% clears its industry range for ROE, a sharper capital-efficiency signal than Telefonaktiebolaget LM Ericsson (ERIC) at 18.09%, which is closer to a typical peer reading.

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%

MSI

Technology Hardware & Equipment industry group

76.98%

MSI
76.98%
Max
42.47%
Q3
19.13%
Median
11.00%
Q1
1.63%
Min
-20.62%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): A comparison of their ROE against the Technology Hardware & Equipment industry group benchmark.

Net Margin (TTM)

Motorola (MSI) at 16.54% retains a top-quartile share of revenue as profit, ahead of Telefonaktiebolaget LM Ericsson (ERIC) at 8.36%, which keeps about the industry-typical share.

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%

MSI

Technology Hardware & Equipment industry group

16.54%

Max
27.60%
MSI
16.54%
Q3
11.66%
Median
4.08%
Q1
0.00%
Min
-11.02%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): A comparison of their net margin against the Technology Hardware & Equipment industry group benchmark.

Operating Margin (TTM)

Motorola (MSI) at 24.62% 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%

MSI

Technology Hardware & Equipment industry group

24.62%

Max
36.27%
MSI
24.62%
Q3
18.36%
Median
8.84%
Q1
1.46%
Min
-21.39%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): A comparison of their operating margin against the Technology Hardware & Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Motorola (MSI)
MetricERICMSI
ROE (TTM)18.09%76.98%
ROA (TTM)7.07%9.64%
Net Margin (TTM)8.36%16.54%
Operating Margin (TTM)0.00%24.62%
Gross Margin (TTM)48.01%51.75%

Growth

Revenue Growth

Motorola (MSI) at 8.00% 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. Motorola (MSI): 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 Motorola (MSI) at 38.14%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Motorola (MSI)
MetricERICMSI
Revenue Growth (YoY)-4.52%8.00%
Revenue Growth (3Y CAGR)-4.48%8.63%
EPS Growth (YoY)85,000.00%38.14%
EPS Growth (3Y CAGR)14.83%17.15%

Financial Strength

Current Ratio (MRQ)

Both Telefonaktiebolaget LM Ericsson (ERIC) at 1.16 and Motorola (MSI) at 1.10 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

MSI

Technology Hardware & Equipment industry group

1.10

Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
MSI
1.10
Min
0.17
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): A comparison of their current ratio against the Technology Hardware & Equipment industry group benchmark.

Debt / Equity (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) at 0.41 is near its industry mid-range for debt-to-equity ratio, while Motorola (MSI) at 3.46 sits above its benchmark range, pointing to a heavier debt load relative to equity.

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

MSI

Technology Hardware & Equipment industry group

3.46

MSI
3.46
Max
1.76
Q3
0.78
Median
0.24
Q1
0.04
Min
0.01
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): 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 Motorola (MSI)
MetricERICMSI
Current Ratio (MRQ)1.161.10
Debt / Equity (MRQ)0.413.46
Net Debt / EBITDA--2.70

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 Motorola (MSI) reports a yield of 0.94%, 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%

MSI

Technology Hardware & Equipment industry group

0.94%

MSI
0.94%
Max
0.73%
Q3
0.31%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): 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 Motorola (MSI) at 38.94% 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%

MSI

Technology Hardware & Equipment industry group

38.94%

MSI
38.94%
Max
32.27%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): A comparison of their payout ratio against the Technology Hardware & Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Telefonaktiebolaget LM Ericsson (ERIC) and Motorola (MSI)
MetricERICMSI
Dividend Yield (TTM)0.00%0.94%
Dividend Payout Ratio (TTM)51.66%38.94%

Valuation

P/E Ratio (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) at 16.55 sits in the cheaper P/E ratio quartile, while Motorola (MSI) at 41.39 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

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

MSI

Technology Hardware & Equipment industry group

41.39

Max
69.48
MSI
41.39
Q3
41.02
Median
26.39
Q1
19.36
Min
6.07
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): 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 Motorola (MSI), whose P/S ratio of 6.75 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
--

MSI

Technology Hardware & Equipment industry group

6.75

Max
11.30
MSI
6.75
Q3
5.82
Median
2.56
Q1
1.05
Min
0.00
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): ERIC does not report P/S ratio, so it has no value marker; MSI 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 relative to book while Motorola (MSI) at 27.75 prices above its industry range — a wide valuation gap against assets.

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

MSI

Technology Hardware & Equipment industry group

27.75

MSI
27.75
Max
10.75
Q3
5.52
Median
3.17
Q1
1.79
Min
0.33
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Telefonaktiebolaget LM Ericsson (ERIC) vs. Motorola (MSI): 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 Motorola (MSI)
MetricERICMSI
P/E Ratio (TTM)16.5541.39
P/S Ratio (TTM)--6.75
P/B Ratio (MRQ)0.3327.75
Free Cash Flow Yield (TTM)86.49%2.24%