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

Updated on August 20, 2025

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

Symbol	ERIC	NOW
Company Name	Telefonaktiebolaget LM Ericsson (publ)	ServiceNow, Inc.
Country	Sweden	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Communications Equipment	Software
Market Capitalization	25.46 billion USD	179.15 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	August 24, 1981	June 29, 2012
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of ERIC and NOW 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. NOW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ERIC	NOW
5-Day Price Return	2.37%	-1.24%
13-Week Price Return	-8.82%	-15.00%
26-Week Price Return	-11.85%	-15.64%
52-Week Price Return	4.50%	7.03%
Month-to-Date Return	2.83%	-8.46%
Year-to-Date Return	-18.38%	-18.57%
10-Day Avg. Volume	4.03M	2.01M
3-Month Avg. Volume	6.66M	1.63M
3-Month Volatility	27.46%	27.13%
Beta	0.80	0.93

Profitability

Return on Equity (TTM)

ERIC

19.57%

Communications Equipment Industry

Max: 32.05%
Q3: 19.58%
Median: 11.77%
Q1: 2.23%
Min: -11.93%

ERIC’s Return on Equity of 19.57% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

NOW

16.62%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

ERIC

7.04%

Communications Equipment Industry

Max: 23.65%
Q3: 14.32%
Median: 5.31%
Q1: 1.45%
Min: -12.72%

ERIC’s Net Profit Margin of 7.04% 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.

NOW

13.78%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

NOW’s Net Profit Margin of 13.78% 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. NOW: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Operating Profit Margin (TTM)

ERIC

10.60%

Communications Equipment Industry

Max: 42.27%
Q3: 18.90%
Median: 6.21%
Q1: 2.97%
Min: -20.72%

ERIC’s Operating Profit Margin of 10.60% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

NOW

13.28%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	ERIC	NOW
Return on Equity (TTM)	19.57%	16.62%
Return on Assets (TTM)	6.22%	8.12%
Net Profit Margin (TTM)	7.04%	13.78%
Operating Profit Margin (TTM)	10.60%	13.28%
Gross Profit Margin (TTM)	47.18%	78.52%

Financial Strength

Current Ratio (MRQ)

ERIC

1.09

Communications Equipment Industry

Max: 1.72
Q3: 1.72
Median: 1.46
Q1: 1.18
Min: 0.93

ERIC’s Current Ratio of 1.09 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NOW

1.09

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

ERIC

0.50

Communications Equipment Industry

Max: 1.55
Q3: 0.92
Median: 0.55
Q1: 0.30
Min: 0.00

ERIC’s Debt-to-Equity Ratio of 0.50 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.

NOW

0.14

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

NOW’s Debt-to-Equity Ratio of 0.14 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. NOW: 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: 181.73
Q3: 113.63
Median: 7.59
Q1: 3.82
Min: -5.39

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.

NOW

32.13

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

NOW’s Interest Coverage Ratio of 32.13 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. NOW: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Financial Strength at a Glance

Symbol	ERIC	NOW
Current Ratio (MRQ)	1.09	1.09
Quick Ratio (MRQ)	0.86	0.99
Debt-to-Equity Ratio (MRQ)	0.50	0.14
Interest Coverage Ratio (TTM)	3.82	32.13

Growth

Revenue Growth

ERIC vs. NOW: 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. NOW: 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

3.79%

Communications Equipment Industry

Max: 3.88%
Q3: 2.75%
Median: 0.93%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 3.79%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

NOW

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

ERIC

70.91%

Communications Equipment Industry

Max: 111.16%
Q3: 55.91%
Median: 28.42%
Q1: 0.00%
Min: 0.00%

ERIC’s Dividend Payout Ratio of 70.91% is in the upper quartile for the Communications Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

NOW

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend at a Glance

Symbol	ERIC	NOW
Dividend Yield (TTM)	3.79%	0.00%
Dividend Payout Ratio (TTM)	70.91%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

14.23

Communications Equipment Industry

Max: 57.30
Q3: 47.92
Median: 27.50
Q1: 17.89
Min: 13.89

In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 14.23 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NOW

106.87

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

A P/E Ratio of 106.87 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

ERIC

1.00

Communications Equipment Industry

Max: 11.03
Q3: 5.53
Median: 2.20
Q1: 0.99
Min: 0.40

ERIC’s P/S Ratio of 1.00 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.

NOW

14.72

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

NOW’s P/S Ratio of 14.72 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

Price-to-Book Ratio (MRQ)

ERIC

3.15

Communications Equipment Industry

Max: 9.66
Q3: 5.60
Median: 3.73
Q1: 2.67
Min: 0.30

ERIC’s P/B Ratio of 3.15 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.

NOW

19.48

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

NOW’s P/B Ratio of 19.48 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

Symbol	ERIC	NOW
Price-to-Earnings Ratio (TTM)	14.23	106.87
Price-to-Sales Ratio (TTM)	1.00	14.72
Price-to-Book Ratio (MRQ)	3.15	19.48
Price-to-Free Cash Flow Ratio (TTM)	6.35	46.65