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.
| Profile Item | ERIC | MSI |
|---|---|---|
| Name | Telefonaktiebolaget LM Ericsson Sponsored ADR | Motorola Solutions, Inc. |
| Country/Region | Sweden | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment | Communications Equipment |
| GICS Sub-Industry | Communications Equipment | Communications Equipment |
| Market Capitalization | 33.25 billion USD | 85.07 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 24, 1981 | January 2, 1962 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ERIC | MSI |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | ERIC | MSI |
|---|---|---|
| Volatility (1Y, Annualized) | 36.32% | 25.11% |
| Beta (5Y) | 0.96 | 0.84 |
| Max Drawdown (5Y) | -62.81% | -27.23% |
| Avg. Volume (3M) | 9.73M | 973.41K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ERIC | MSI |
|---|---|---|
| Sharpe Ratio (1Y) | 0.20 | 1.25 |
| Sortino Ratio (1Y) | 0.29 | 1.90 |
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%
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%
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%
Profitability Metrics
| Metric | ERIC | MSI |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | ERIC | MSI |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | ERIC | MSI |
|---|---|---|
| Current Ratio (MRQ) | 1.16 | 1.10 |
| Debt / Equity (MRQ) | 0.41 | 3.46 |
| 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%
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%
Dividend Metrics
| Metric | ERIC | MSI |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | ERIC | MSI |
|---|---|---|
| P/E Ratio (TTM) | 16.55 | 41.39 |
| P/S Ratio (TTM) | -- | 6.75 |
| P/B Ratio (MRQ) | 0.33 | 27.75 |
| Free Cash Flow Yield (TTM) | 86.49% | 2.24% |