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

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

SymbolERICNTAP
Company NameTelefonaktiebolaget LM Ericsson (publ)NetApp, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentTechnology Hardware, Storage & Peripherals
Market Capitalization25.46 billion USD21.89 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 24, 1981November 21, 1995
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolERICNTAP
5-Day Price Return2.37%5.34%
13-Week Price Return-8.82%11.15%
26-Week Price Return-11.85%-11.80%
52-Week Price Return4.50%-11.01%
Month-to-Date Return2.83%5.06%
Year-to-Date Return-18.38%-5.75%
10-Day Avg. Volume4.03M1.35M
3-Month Avg. Volume6.66M2.01M
3-Month Volatility27.46%25.42%
Beta0.801.45

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.

NTAP

123.03%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

NTAP’s Return on Equity of 123.03% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ERIC vs. NTAP: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

18.05%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

NTAP’s Net Profit Margin of 18.05% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ERIC vs. NTAP: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

20.34%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

NTAP’s Operating Profit Margin of 20.34% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ERIC vs. NTAP: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolERICNTAP
Return on Equity (TTM)19.57%123.03%
Return on Assets (TTM)6.22%12.44%
Net Profit Margin (TTM)7.04%18.05%
Operating Profit Margin (TTM)10.60%20.34%
Gross Profit Margin (TTM)47.18%70.19%

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.

NTAP

1.26

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

NTAP’s Current Ratio of 1.26 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

ERIC vs. NTAP: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

3.11

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

With a Debt-to-Equity Ratio of 3.11, NTAP operates with exceptionally high leverage compared to the Technology Hardware, Storage & Peripherals industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ERIC vs. NTAP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

17.59

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

NTAP’s Interest Coverage Ratio of 17.59 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

ERIC vs. NTAP: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolERICNTAP
Current Ratio (MRQ)1.091.26
Quick Ratio (MRQ)0.861.22
Debt-to-Equity Ratio (MRQ)0.503.11
Interest Coverage Ratio (TTM)3.8217.59

Growth

Revenue Growth

ERIC vs. NTAP: 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. NTAP: 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.

NTAP

1.97%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Yield of 1.97% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

ERIC vs. NTAP: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

35.75%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Payout Ratio of 35.75% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ERIC vs. NTAP: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolERICNTAP
Dividend Yield (TTM)3.79%1.97%
Dividend Payout Ratio (TTM)70.91%35.75%

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.

NTAP

18.19

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

NTAP’s P/E Ratio of 18.19 is within the middle range for the Technology Hardware, Storage & Peripherals 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. NTAP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

3.28

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

NTAP’s P/S Ratio of 3.28 is in the upper echelon for the Technology Hardware, Storage & Peripherals 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. NTAP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

NTAP

17.30

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

At 17.30, NTAP’s P/B Ratio is at an extreme premium to the Technology Hardware, Storage & Peripherals 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. NTAP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolERICNTAP
Price-to-Earnings Ratio (TTM)14.2318.19
Price-to-Sales Ratio (TTM)1.003.28
Price-to-Book Ratio (MRQ)3.1517.30
Price-to-Free Cash Flow Ratio (TTM)6.3516.13