Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsMotorola Solutions Inc (MSI)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.47
-3.69%
TECHNOLOGY · Cap: $40.27B
MSI
Motorola Solutions Inc
$467.28
-0.39%
TECHNOLOGY · Cap: $78.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 1957% more annual revenue ($240.31B vs $11.68B). MSI leads profitability with a 18.4% profit margin vs 12.0%. MSI appears more attractively valued with a PEG of 2.58. MSI earns a higher WallStSmart Score of 62/100 (C+).
ERIC
Buy52
out of 100
Grade: C-
MSI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.8%
Fair Value
$42.59
Current Price
$11.47
$31.12 discount
Margin of Safety
-60.5%
Fair Value
$262.35
Current Price
$467.28
$204.93 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Generating 14.9B in free cash flow
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Every $100 of equity generates 104 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Generating 1.1B in free cash flow
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 5.0%
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Trading at 32.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, EPS Growth, Free Cash Flow.
Bull Case : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Bear Case : MSI
The primary concerns for MSI are P/E Ratio, Piotroski F-Score, PEG Ratio. Debt-to-equity of 4.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
ERIC profiles as a declining stock while MSI is a mature play — different risk/reward profiles.
MSI carries more volatility with a beta of 0.96 — expect wider price swings.
MSI is growing revenue faster at 12.3% — sustainability is the question.
ERIC generates stronger free cash flow (14.9B), providing more financial flexibility.
Bottom Line
MSI scores higher overall (62/100 vs 52/100), backed by strong 18.4% margins and 12.3% revenue growth. ERIC offers better value entry with a 73.8% margin of safety. Both earn "Buy" and "Buy" 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.
Visit Website →Motorola Solutions Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
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