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

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

SymbolERICQXO
Company NameTelefonaktiebolaget LM Ericsson (publ)QXO, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustryCommunications EquipmentTrading Companies & Distributors
Market Capitalization25.74 billion USD12.99 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 24, 1981April 17, 2012
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolERICQXO
5-Day Price Return1.36%-8.28%
13-Week Price Return-10.72%10.11%
26-Week Price Return-11.99%45.51%
52-Week Price Return1.44%57.26%
Month-to-Date Return4.32%-3.89%
Year-to-Date Return-17.20%21.26%
10-Day Avg. Volume3.48M7.36M
3-Month Avg. Volume6.34M8.26M
3-Month Volatility26.67%55.82%
Beta0.772.19

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.

QXO

-0.34%

Trading Companies & Distributors Industry

Max
32.33%
Q3
19.92%
Median
14.05%
Q1
11.46%
Min
0.91%

QXO has a negative Return on Equity of -0.34%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ERIC vs. QXO: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

-1.09%

Trading Companies & Distributors Industry

Max
17.73%
Q3
10.81%
Median
6.13%
Q1
4.33%
Min
2.09%

QXO has a negative Net Profit Margin of -1.09%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ERIC vs. QXO: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

-16.12%

Trading Companies & Distributors Industry

Max
25.50%
Q3
15.13%
Median
7.46%
Q1
5.44%
Min
3.55%

QXO has a negative Operating Profit Margin of -16.12%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ERIC vs. QXO: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Trading Companies & Distributors industry benchmarks.

Profitability at a Glance

SymbolERICQXO
Return on Equity (TTM)19.57%-0.34%
Return on Assets (TTM)6.22%-0.26%
Net Profit Margin (TTM)7.04%-1.09%
Operating Profit Margin (TTM)10.60%-16.12%
Gross Profit Margin (TTM)47.18%21.49%

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.

QXO

3.00

Trading Companies & Distributors Industry

Max
2.82
Q3
2.13
Median
1.60
Q1
1.43
Min
0.46

QXO’s Current Ratio of 3.00 is exceptionally high, placing it well outside the typical range for the Trading Companies & Distributors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ERIC vs. QXO: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

0.35

Trading Companies & Distributors Industry

Max
1.88
Q3
1.18
Median
0.74
Q1
0.54
Min
0.00

Falling into the lower quartile for the Trading Companies & Distributors industry, QXO’s Debt-to-Equity Ratio of 0.35 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ERIC vs. QXO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

-23.41

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.75
Q1
2.70
Min
-1.67

QXO has a negative Interest Coverage Ratio of -23.41. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ERIC vs. QXO: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Trading Companies & Distributors industry benchmarks.

Financial Strength at a Glance

SymbolERICQXO
Current Ratio (MRQ)1.093.00
Quick Ratio (MRQ)0.862.10
Debt-to-Equity Ratio (MRQ)0.500.35
Interest Coverage Ratio (TTM)3.82-23.41

Growth

Revenue Growth

ERIC vs. QXO: 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. QXO: 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

3.73%

Communications Equipment Industry

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

With a Dividend Yield of 3.73%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

QXO

0.59%

Trading Companies & Distributors Industry

Max
4.99%
Q3
3.04%
Median
1.94%
Q1
1.22%
Min
0.00%

QXO’s Dividend Yield of 0.59% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ERIC vs. QXO: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

0.00%

Trading Companies & Distributors Industry

Max
95.14%
Q3
62.08%
Median
51.17%
Q1
26.24%
Min
0.00%

QXO 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. QXO: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Trading Companies & Distributors industry benchmarks.

Dividend at a Glance

SymbolERICQXO
Dividend Yield (TTM)3.73%0.59%
Dividend Payout Ratio (TTM)70.91%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

14.44

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 14.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

QXO

--

Trading Companies & Distributors Industry

Max
48.55
Q3
26.73
Median
17.17
Q1
10.78
Min
1.62

P/E Ratio data for QXO is currently unavailable.

ERIC vs. QXO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Trading Companies & Distributors industry benchmarks.

Price-to-Sales Ratio (TTM)

ERIC

1.02

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

ERIC’s P/S Ratio of 1.02 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.

QXO

6.72

Trading Companies & Distributors Industry

Max
4.88
Q3
2.56
Median
1.02
Q1
0.60
Min
0.29

With a P/S Ratio of 6.72, QXO trades at a valuation that eclipses even the highest in the Trading Companies & Distributors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ERIC vs. QXO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Trading Companies & Distributors 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.

QXO

1.46

Trading Companies & Distributors Industry

Max
8.77
Q3
4.33
Median
2.00
Q1
1.11
Min
0.35

QXO’s P/B Ratio of 1.46 is within the conventional range for the Trading Companies & Distributors 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.

ERIC vs. QXO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Trading Companies & Distributors industry benchmarks.

Valuation at a Glance

SymbolERICQXO
Price-to-Earnings Ratio (TTM)14.44--
Price-to-Sales Ratio (TTM)1.026.72
Price-to-Book Ratio (MRQ)3.151.46
Price-to-Free Cash Flow Ratio (TTM)6.44108.01