Seek Returns logo

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

Updated on

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

SymbolERICRGTI
Company NameTelefonaktiebolaget LM Ericsson (publ)Rigetti Computing, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSemiconductors & Semiconductor Equipment
Market Capitalization25.46 billion USD5.59 billion USD
ExchangeNasdaqGSNasdaqCM
Listing DateAugust 24, 1981April 22, 2021
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolERICRGTI
5-Day Price Return2.37%10.09%
13-Week Price Return-8.82%49.26%
26-Week Price Return-11.85%29.72%
52-Week Price Return4.50%1,919.44%
Month-to-Date Return2.83%18.90%
Year-to-Date Return-18.38%12.98%
10-Day Avg. Volume4.03M40.77M
3-Month Avg. Volume6.66M47.16M
3-Month Volatility27.46%118.49%
Beta0.801.48

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.

RGTI

-95.10%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

RGTI has a negative Return on Equity of -95.10%. 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. RGTI: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

-1,493.98%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

RGTI has a negative Net Profit Margin of -1,493.98%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ERIC vs. RGTI: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

-803.29%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

RGTI has a negative Operating Profit Margin of -803.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ERIC vs. RGTI: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolERICRGTI
Return on Equity (TTM)19.57%-95.10%
Return on Assets (TTM)6.22%-63.00%
Net Profit Margin (TTM)7.04%-1,493.98%
Operating Profit Margin (TTM)10.60%-803.29%
Gross Profit Margin (TTM)47.18%50.37%

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.

RGTI

18.82

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

RGTI’s Current Ratio of 18.82 is exceptionally high, placing it well outside the typical range for the Semiconductors & Semiconductor Equipment 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. RGTI: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

0.00

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, RGTI’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ERIC vs. RGTI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

-1.28

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

RGTI has a negative Interest Coverage Ratio of -1.28. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ERIC vs. RGTI: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolERICRGTI
Current Ratio (MRQ)1.0918.82
Quick Ratio (MRQ)0.8618.63
Debt-to-Equity Ratio (MRQ)0.500.00
Interest Coverage Ratio (TTM)3.82-1.28

Growth

Revenue Growth

ERIC vs. RGTI: 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. RGTI: 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.

RGTI

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

RGTI 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. RGTI: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

RGTI 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. RGTI: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolERICRGTI
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.

RGTI

--

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

P/E Ratio data for RGTI is currently unavailable.

ERIC vs. RGTI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

604.15

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 604.15, RGTI trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ERIC vs. RGTI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

RGTI

10.93

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

RGTI’s P/B Ratio of 10.93 is in the upper tier for the Semiconductors & Semiconductor Equipment 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. RGTI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolERICRGTI
Price-to-Earnings Ratio (TTM)14.23--
Price-to-Sales Ratio (TTM)1.00604.15
Price-to-Book Ratio (MRQ)3.1510.93
Price-to-Free Cash Flow Ratio (TTM)6.35--