ERIC vs. TEL: Telefonaktiebolaget LM Ericsson vs. TE Connectivity Stock Comparison
How do Telefonaktiebolaget LM Ericsson (ERIC) and TE Connectivity (TEL) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Telefonaktiebolaget LM Ericsson (ERIC) and TE Connectivity (TEL) both fall under the Technology Hardware & Equipment industry group, but ERIC is classified in Communications Equipment while TEL is classified in Electronic Equipment, Instruments & Components.
TE Connectivity (TEL) trades as ordinary local shares, while Telefonaktiebolaget LM Ericsson (ERIC) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | ERIC | TEL |
|---|---|---|
| Name | Telefonaktiebolaget LM Ericsson Sponsored ADR | TE Connectivity plc |
| Country/Region | Sweden | Ireland |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment | Electronic Equipment, Instruments & Components |
| GICS Sub-Industry | Communications Equipment | Electronic Manufacturing Services |
| Market Capitalization | 33.25 billion USD | 59.52 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 24, 1981 | June 14, 2007 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Total Return (1Y) | 11.58% | -8.84% |
| Total Return (3Y, Annualized) | 36.47% | 22.58% |
| Total Return (5Y, Annualized) | 2.71% | 7.96% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Volatility (1Y, Annualized) | 36.32% | 36.95% |
| Beta (5Y) | 0.96 | 1.14 |
| Max Drawdown (5Y) | -62.81% | -34.26% |
| Avg. Volume (3M) | 9.73M | 1.95M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Sharpe Ratio (1Y) | 0.20 | -0.36 |
| Sortino Ratio (1Y) | 0.29 | -0.47 |
Profitability
ROE (TTM)
TE Connectivity (TEL) at 24.61% sits in the top ROE quartile, while Telefonaktiebolaget LM Ericsson (ERIC) at 18.09% is closer to the peer norm — stronger capital efficiency for TEL.
ERIC
Technology Hardware & Equipment industry group
18.09%
- Max
- 42.47%
- Q3
- 19.13%
- ERIC
- 18.09%
- Median
- 11.00%
- Q1
- 1.63%
- Min
- -20.62%
TEL
Technology Hardware & Equipment industry group
24.61%
- Max
- 42.47%
- TEL
- 24.61%
- Q3
- 19.13%
- Median
- 11.00%
- Q1
- 1.63%
- Min
- -20.62%
Net Margin (TTM)
TE Connectivity (TEL) at 16.36% retains a top-quartile share of revenue as profit, ahead of Telefonaktiebolaget LM Ericsson (ERIC) at 8.36%, which keeps about the industry-typical share.
ERIC
Technology Hardware & Equipment industry group
8.36%
- Max
- 27.60%
- Q3
- 11.66%
- ERIC
- 8.36%
- Median
- 4.08%
- Q1
- 0.00%
- Min
- -11.02%
TEL
Technology Hardware & Equipment industry group
16.36%
- Max
- 27.60%
- TEL
- 16.36%
- Q3
- 11.66%
- Median
- 4.08%
- Q1
- 0.00%
- Min
- -11.02%
Operating Margin (TTM)
TE Connectivity (TEL) at 21.07% carries a top-quartile operating margin, while Telefonaktiebolaget LM Ericsson (ERIC) at 0.00% operates in the bottom quartile.
ERIC
Technology Hardware & Equipment industry group
0.00%
- Max
- 36.27%
- Q3
- 18.36%
- Median
- 8.84%
- Q1
- 1.46%
- ERIC
- 0.00%
- Min
- -21.39%
TEL
Technology Hardware & Equipment industry group
21.07%
- Max
- 36.27%
- TEL
- 21.07%
- Q3
- 18.36%
- Median
- 8.84%
- Q1
- 1.46%
- Min
- -21.39%
Profitability Metrics
| Metric | ERIC | TEL |
|---|---|---|
| ROE (TTM) | 18.09% | 24.61% |
| ROA (TTM) | 7.07% | 10.00% |
| Net Margin (TTM) | 8.36% | 16.36% |
| Operating Margin (TTM) | 0.00% | 21.07% |
| Gross Margin (TTM) | 48.01% | 36.24% |
Growth
Revenue Growth
TE Connectivity (TEL) at 8.94% is around its peer norm for revenue growth, while Telefonaktiebolaget LM Ericsson (ERIC) at -4.52% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Telefonaktiebolaget LM Ericsson (ERIC) at 85,000.00% delivers above-range EPS growth, while TE Connectivity (TEL) at -40.37% falls into the bottom quartile — a wide split in earnings momentum.
Growth Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Revenue Growth (YoY) | -4.52% | 8.94% |
| Revenue Growth (3Y CAGR) | -4.48% | 1.97% |
| EPS Growth (YoY) | 85,000.00% | -40.37% |
| EPS Growth (3Y CAGR) | 14.83% | -6.23% |
Financial Strength
Current Ratio (MRQ)
TE Connectivity (TEL) at 1.73 keeps current ratio within its industry’s typical mid-range, while Telefonaktiebolaget LM Ericsson (ERIC) at 1.16 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ERIC.
ERIC
Technology Hardware & Equipment industry group
1.16
- Max
- 5.34
- Q3
- 3.02
- Median
- 1.95
- Q1
- 1.32
- ERIC
- 1.16
- Min
- 0.17
TEL
Technology Hardware & Equipment industry group
1.73
- Max
- 5.34
- Q3
- 3.02
- Median
- 1.95
- TEL
- 1.73
- Q1
- 1.32
- Min
- 0.17
Debt / Equity (MRQ)
Both Telefonaktiebolaget LM Ericsson (ERIC) at 0.41 and TE Connectivity (TEL) at 0.41 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
ERIC
Technology Hardware & Equipment industry group
0.41
- Max
- 1.76
- Q3
- 0.78
- ERIC
- 0.41
- Median
- 0.24
- Q1
- 0.04
- Min
- 0.01
TEL
Technology Hardware & Equipment industry group
0.41
- Max
- 1.76
- Q3
- 0.78
- TEL
- 0.41
- Median
- 0.24
- Q1
- 0.04
- Min
- 0.01
Financial Strength Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Current Ratio (MRQ) | 1.16 | 1.73 |
| Debt / Equity (MRQ) | 0.41 | 0.41 |
| Net Debt / EBITDA | -- | 0.76 |
Dividends
Dividend Yield (TTM)
Telefonaktiebolaget LM Ericsson (ERIC) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile TE Connectivity (TEL) reports a yield of 1.44%, ranking against industry peers normally.
ERIC
Technology Hardware & Equipment industry group
0.00%
- Max
- 0.73%
- Q3
- 0.31%
- ERIC
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEL
Technology Hardware & Equipment industry group
1.44%
- TEL
- 1.44%
- Max
- 0.73%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both pay out more than their industries’ typical bands, and ERIC more so: TE Connectivity (TEL) at 28.50% sits above the band, while Telefonaktiebolaget LM Ericsson (ERIC) at 51.66% exceeds every peer in its group.
ERIC
Technology Hardware & Equipment industry group
51.66%
- ERIC
- 51.66%
- Max
- 32.27%
- Q3
- 14.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TEL
Technology Hardware & Equipment industry group
28.50%
- Max
- 32.27%
- TEL
- 28.50%
- Q3
- 14.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ERIC | TEL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.44% |
| Dividend Payout Ratio (TTM) | 51.66% | 28.50% |
Valuation
P/E Ratio (TTM)
Both Telefonaktiebolaget LM Ericsson (ERIC) at 16.55 and TE Connectivity (TEL) at 18.70 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.
ERIC
Technology Hardware & Equipment industry group
16.55
- Max
- 69.48
- Q3
- 41.02
- Median
- 26.39
- Q1
- 19.36
- ERIC
- 16.55
- Min
- 6.07
TEL
Technology Hardware & Equipment industry group
18.70
- Max
- 69.48
- Q3
- 41.02
- Median
- 26.39
- Q1
- 19.36
- TEL
- 18.70
- Min
- 6.07
P/S Ratio (TTM)
A sales-based read is only available for TE Connectivity (TEL), whose P/S ratio of 2.99 ranks against industry peers; Telefonaktiebolaget LM Ericsson (ERIC) reports no figure this period.
ERIC
Technology Hardware & Equipment industry group
--
- Max
- 11.30
- Q3
- 5.82
- Median
- 2.56
- Q1
- 1.05
- Min
- 0.00
- ERIC
- --
TEL
Technology Hardware & Equipment industry group
2.99
- Max
- 11.30
- Q3
- 5.82
- TEL
- 2.99
- Median
- 2.56
- Q1
- 1.05
- Min
- 0.00
P/B Ratio (MRQ)
Telefonaktiebolaget LM Ericsson (ERIC) at 0.33 sits in the lower P/B ratio quartile against book while TE Connectivity (TEL) at 4.38 is valued near its industry’s middle — ERIC is cheaper on assets, though weigh it against ROE and asset quality.
ERIC
Technology Hardware & Equipment industry group
0.33
- Max
- 10.75
- Q3
- 5.52
- Median
- 3.17
- Q1
- 1.79
- ERIC
- 0.33
- Min
- 0.33
TEL
Technology Hardware & Equipment industry group
4.38
- Max
- 10.75
- Q3
- 5.52
- TEL
- 4.38
- Median
- 3.17
- Q1
- 1.79
- Min
- 0.33
Valuation Metrics
| Metric | ERIC | TEL |
|---|---|---|
| P/E Ratio (TTM) | 16.55 | 18.70 |
| P/S Ratio (TTM) | -- | 2.99 |
| P/B Ratio (MRQ) | 0.33 | 4.38 |
| Free Cash Flow Yield (TTM) | 86.49% | 4.09% |