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

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

SymbolERICSSNC
Company NameTelefonaktiebolaget LM Ericsson (publ)SS&C Technologies Holdings, Inc.
CountrySwedenUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustryCommunications EquipmentProfessional Services
Market Capitalization31.33 billion USD20.49 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 24, 1981March 31, 2010
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolERICSSNC
5-Day Price Return-2.52%-0.95%
13-Week Price Return19.93%-6.76%
26-Week Price Return6.94%3.30%
52-Week Price Return2.84%13.44%
Month-to-Date Return-5.41%-2.61%
Year-to-Date Return0.82%9.13%
10-Day Avg. Volume4.85M1.09M
3-Month Avg. Volume5.91M1.29M
3-Month Volatility40.60%21.08%
Beta0.731.20

Profitability

Return on Equity (TTM)

ERIC

26.66%

Communications Equipment Industry

Max
31.28%
Q3
24.67%
Median
13.12%
Q1
4.60%
Min
-12.73%

In the upper quartile for the Communications Equipment industry, ERIC’s Return on Equity of 26.66% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

SSNC

12.54%

Professional Services Industry

Max
50.82%
Q3
32.98%
Median
21.73%
Q1
12.35%
Min
-10.69%

SSNC’s Return on Equity of 12.54% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

ERIC

10.26%

Communications Equipment Industry

Max
28.72%
Q3
14.02%
Median
5.41%
Q1
2.50%
Min
-13.11%

ERIC’s Net Profit Margin of 10.26% 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.

SSNC

13.86%

Professional Services Industry

Max
27.86%
Q3
14.27%
Median
7.71%
Q1
4.47%
Min
-9.49%

SSNC’s Net Profit Margin of 13.86% is aligned with the median group of its peers in the Professional Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

ERIC vs. SSNC: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Professional Services industry benchmarks.

Operating Profit Margin (TTM)

ERIC

14.74%

Communications Equipment Industry

Max
33.69%
Q3
15.81%
Median
6.02%
Q1
3.00%
Min
-4.94%

ERIC’s Operating Profit Margin of 14.74% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

SSNC

23.09%

Professional Services Industry

Max
35.71%
Q3
19.52%
Median
12.30%
Q1
7.86%
Min
-1.29%

An Operating Profit Margin of 23.09% places SSNC in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolERICSSNC
Return on Equity (TTM)26.66%12.54%
Return on Assets (TTM)8.77%4.37%
Net Profit Margin (TTM)10.26%13.86%
Operating Profit Margin (TTM)14.74%23.09%
Gross Profit Margin (TTM)47.62%48.56%

Financial Strength

Current Ratio (MRQ)

ERIC

1.17

Communications Equipment Industry

Max
3.28
Q3
2.10
Median
1.52
Q1
1.17
Min
0.91

ERIC’s Current Ratio of 1.17 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

SSNC

1.12

Professional Services Industry

Max
2.45
Q3
1.69
Median
1.33
Q1
1.10
Min
0.47

SSNC’s Current Ratio of 1.12 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

ERIC

0.43

Communications Equipment Industry

Max
1.44
Q3
0.96
Median
0.43
Q1
0.21
Min
0.00

ERIC’s Debt-to-Equity Ratio of 0.43 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.

SSNC

0.95

Professional Services Industry

Max
2.55
Q3
1.54
Median
0.94
Q1
0.45
Min
0.00

SSNC’s Debt-to-Equity Ratio of 0.95 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ERIC vs. SSNC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Professional Services industry benchmarks.

Interest Coverage Ratio (TTM)

ERIC

3.82

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
8.92
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.

SSNC

3.25

Professional Services Industry

Max
39.45
Q3
20.05
Median
11.35
Q1
5.46
Min
-1.21

In the lower quartile for the Professional Services industry, SSNC’s Interest Coverage Ratio of 3.25 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolERICSSNC
Current Ratio (MRQ)1.171.12
Quick Ratio (MRQ)0.941.07
Debt-to-Equity Ratio (MRQ)0.430.95
Interest Coverage Ratio (TTM)3.823.25

Growth

Revenue Growth

ERIC vs. SSNC: 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. SSNC: 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

3.06%

Communications Equipment Industry

Max
2.99%
Q3
2.30%
Median
0.91%
Q1
0.00%
Min
0.00%

ERIC’s Dividend Yield of 3.06% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

SSNC

1.23%

Professional Services Industry

Max
4.35%
Q3
2.86%
Median
1.57%
Q1
0.72%
Min
0.00%

SSNC’s Dividend Yield of 1.23% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

ERIC vs. SSNC: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Professional Services industry benchmarks.

Dividend Payout Ratio (TTM)

ERIC

45.50%

Communications Equipment Industry

Max
111.16%
Q3
61.16%
Median
30.78%
Q1
0.00%
Min
0.00%

ERIC’s Dividend Payout Ratio of 45.50% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SSNC

29.41%

Professional Services Industry

Max
99.60%
Q3
69.06%
Median
43.41%
Q1
19.44%
Min
0.00%

SSNC’s Dividend Payout Ratio of 29.41% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ERIC vs. SSNC: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Professional Services industry benchmarks.

Dividend at a Glance

SymbolERICSSNC
Dividend Yield (TTM)3.06%1.23%
Dividend Payout Ratio (TTM)45.50%29.41%

Valuation

Price-to-Earnings Ratio (TTM)

ERIC

12.35

Communications Equipment Industry

Max
74.67
Q3
56.42
Median
31.00
Q1
15.93
Min
3.89

In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 12.35 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

SSNC

23.94

Professional Services Industry

Max
52.91
Q3
32.20
Median
25.00
Q1
17.95
Min
6.60

SSNC’s P/E Ratio of 23.94 is within the middle range for the Professional Services 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. SSNC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Professional Services industry benchmarks.

Price-to-Sales Ratio (TTM)

ERIC

1.27

Communications Equipment Industry

Max
11.84
Q3
5.68
Median
2.55
Q1
1.24
Min
0.40

ERIC’s P/S Ratio of 1.27 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.

SSNC

3.32

Professional Services Industry

Max
8.52
Q3
4.25
Median
2.07
Q1
0.84
Min
0.18

SSNC’s P/S Ratio of 3.32 aligns with the market consensus for the Professional Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

ERIC

2.55

Communications Equipment Industry

Max
6.02
Q3
6.01
Median
3.83
Q1
2.41
Min
0.42

ERIC’s P/B Ratio of 2.55 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.

SSNC

3.13

Professional Services Industry

Max
18.65
Q3
9.28
Median
6.16
Q1
2.96
Min
0.53

SSNC’s P/B Ratio of 3.13 is within the conventional range for the Professional Services 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. SSNC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Professional Services industry benchmarks.

Valuation at a Glance

SymbolERICSSNC
Price-to-Earnings Ratio (TTM)12.3523.94
Price-to-Sales Ratio (TTM)1.273.32
Price-to-Book Ratio (MRQ)2.553.13
Price-to-Free Cash Flow Ratio (TTM)10.0115.72