WallStSmart

Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsHewlett Packard Enterprise Co (HPE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Telefonaktiebolaget LM Ericsson B ADR generates 474% more annual revenue ($240.31B vs $41.87B). ERIC leads profitability with a 10.8% profit margin vs 6.7%. HPE appears more attractively valued with a PEG of 0.43. HPE earns a higher WallStSmart Score of 75/100 (B).

ERIC

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.11

HPE

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 5.0Value: 7.0Quality: 4.0
Piotroski: 3/9Altman Z: 0.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ERICUndervalued (+64.9%)

Margin of Safety

+64.9%

Fair Value

$31.71

Current Price

$10.31

$21.40 discount

UndervaluedFair: $31.71Overvalued

Intrinsic value data unavailable for HPE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ERIC4 strengths · Avg: 8.8/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
23.6%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

HPE5 strengths · Avg: 9.4/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
410.2%10/10

Earnings expanding 410.2% YoY

Market CapQuality
$74.38B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

ERIC4 concerns · Avg: 2.8/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

Revenue GrowthGrowth
-6.1%2/10

Revenue declined 6.1%

EPS GrowthGrowth
-10.9%2/10

Earnings declined 10.9%

HPE4 concerns · Avg: 3.0/10
P/E RatioValuation
28.9x4/10

Moderate valuation

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ERIC

The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.

Bull Case : HPE

The strongest argument for HPE centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.

Bear Case : ERIC

The primary concerns for ERIC are PEG Ratio, Operating Margin, Revenue Growth.

Bear Case : HPE

The primary concerns for HPE are P/E Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

ERIC profiles as a declining stock while HPE is a hypergrowth play — different risk/reward profiles.

HPE carries more volatility with a beta of 1.44 — expect wider price swings.

HPE is growing revenue faster at 33.7% — sustainability is the question.

ERIC generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

HPE scores higher overall (75/100 vs 46/100) and 33.7% revenue growth. ERIC offers better value entry with a 64.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Telefonaktiebolaget LM Ericsson B ADR

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.

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Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

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