Seek Returns logo

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

Updated on

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

SymbolERICRIOT
Company NameTelefonaktiebolaget LM Ericsson (publ)Riot Platforms, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSoftware
Market Capitalization26.75 billion USD7.00 billion USD
ExchangeNasdaqGSNasdaqCM
Listing DateAugust 24, 1981March 31, 2016
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolERICRIOT
5-Day Price Return0.70%5.78%
13-Week Price Return-4.75%68.41%
26-Week Price Return-6.96%140.89%
52-Week Price Return-1.09%142.73%
Month-to-Date Return3.37%38.30%
Year-to-Date Return-13.40%86.39%
10-Day Avg. Volume6.14M42.50M
3-Month Avg. Volume5.55M40.56M
3-Month Volatility26.42%77.41%
Beta0.784.74

Profitability

Return on Equity (TTM)

ERIC

19.57%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

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.

RIOT

-3.13%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

RIOT has a negative Return on Equity of -3.13%. 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. RIOT: 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
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

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.

RIOT

-17.51%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

RIOT has a negative Net Profit Margin of -17.51%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ERIC vs. RIOT: 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
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

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.

RIOT

9.04%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

RIOT’s Operating Profit Margin of 9.04% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolERICRIOT
Return on Equity (TTM)19.57%-3.13%
Return on Assets (TTM)6.22%-2.55%
Net Profit Margin (TTM)7.04%-17.51%
Operating Profit Margin (TTM)10.60%9.04%
Gross Profit Margin (TTM)47.18%35.64%

Financial Strength

Current Ratio (MRQ)

ERIC

1.09

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

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.

RIOT

1.38

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

RIOT’s Current Ratio of 1.38 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

ERIC vs. RIOT: 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
1.44
Q3
0.86
Median
0.53
Q1
0.22
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.

RIOT

0.25

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

RIOT’s Debt-to-Equity Ratio of 0.25 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. RIOT: 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
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

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.

RIOT

-2.83

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

RIOT has a negative Interest Coverage Ratio of -2.83. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ERIC vs. RIOT: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Financial Strength at a Glance

SymbolERICRIOT
Current Ratio (MRQ)1.091.38
Quick Ratio (MRQ)0.861.24
Debt-to-Equity Ratio (MRQ)0.500.25
Interest Coverage Ratio (TTM)3.82-2.83

Growth

Revenue Growth

ERIC vs. RIOT: 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. RIOT: 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

3.57%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.57%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

RIOT

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

RIOT 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. RIOT: 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
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

ERIC’s Dividend Payout Ratio of 70.91% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RIOT

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

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

Dividend at a Glance

SymbolERICRIOT
Dividend Yield (TTM)3.57%0.00%
Dividend Payout Ratio (TTM)70.91%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

15.10

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 15.10 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

RIOT

--

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

P/E Ratio data for RIOT is currently unavailable.

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

Price-to-Sales Ratio (TTM)

ERIC

1.06

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

ERIC’s P/S Ratio of 1.06 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.

RIOT

12.76

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

RIOT’s P/S Ratio of 12.76 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ERIC vs. RIOT: 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
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

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.

RIOT

1.22

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

RIOT’s P/B Ratio of 1.22 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

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

Valuation at a Glance

SymbolERICRIOT
Price-to-Earnings Ratio (TTM)15.10--
Price-to-Sales Ratio (TTM)1.0612.76
Price-to-Book Ratio (MRQ)3.151.22
Price-to-Free Cash Flow Ratio (TTM)6.731,689.51