WallStSmart

Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsNokia Corp ADR (NOK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Telefonaktiebolaget LM Ericsson B ADR generates 1078% more annual revenue ($240.31B vs $20.39B). ERIC leads profitability with a 10.8% profit margin vs 3.5%. NOK appears more attractively valued with a PEG of 0.90. ERIC earns a higher WallStSmart Score of 46/100 (D+).

ERIC

Hold

46

out of 100

Grade: D+

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

NOK

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.65
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 NOK.

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

NOK4 strengths · Avg: 8.5/10
Market CapQuality
$62.31B9/10

Large-cap with strong market position

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

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%

NOK4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

P/E RatioValuation
79.5x2/10

Premium valuation, high expectations priced in

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 : NOK

The strongest argument for NOK centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.90 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 : NOK

The primary concerns for NOK are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 79.5x leaves little room for execution misses. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

ERIC profiles as a declining stock while NOK is a value play — different risk/reward profiles.

NOK carries more volatility with a beta of 0.77 — expect wider price swings.

NOK is growing revenue faster at 8.4% — sustainability is the question.

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

Bottom Line

ERIC scores higher overall (46/100 vs 44/100). Both earn "Hold" 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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Nokia Corp ADR

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Nokia Corporation offers fixed and mobile network solutions globally. The company is headquartered in Espoo, Finland.

Visit Website →

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