ERICSSON LM TELEPHONE CO vs ESCO TECHNOLOGIES INC., two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
ESCO keeps 24.7% of revenue as net income supplying filtration, test chambers, and utility gear; Ericsson keeps 12.1% supplying the world's cellular networks, and the margin gap is the whole story of scale versus niche. The small specialist earns the fatter economics and the bigger multiple, 28.6 times earnings against 13.5, while Ericsson compensates with cash, a 7.9% free-cash yield that towers over ESCO's 2.5%. Returns on assets favor the niche as well, 12.8% to 10.3%. The market is paying up for ESCO's defense-and-utility tailwinds and charging almost nothing for Ericsson's incumbency. Cheapness of that depth is an opinion about telecom capex, not about Ericsson.
Comparison updated 2026-07-10.
| Metric | ERIC | ESE |
|---|---|---|
| Price | $10.96 | $339.97 |
| Market cap | $36.5B | $8.8B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Growth |
| P/E | 13.5 | 28.6 |
| P/B | 3.48 | 5.56 |
| P/S | 1.62 | 7.07 |
| EV/EBITDA | 7.1 | 97.0 |
| Revenue growth | +0.9% | +39.3% |
| Gross margin | 47.6% | — |
| Operating margin | 16.3% | — |
| Net margin | 12.1% | 24.7% |
| Return on equity | 26.0% | 19.4% |
| Return on assets | 10.3% | 12.8% |
| Return on invested capital | 26.3% | 1.7% |
| FCF yield | 7.9% | 2.5% |
| Dividend yield | — | 0.1% |
| Debt / equity | 0.00 | 0.10 |
| Current ratio | 1.29 | 1.45 |
| Altman Z (solvency) | 7.77 | 7.47 |
| Piotroski F (quality) | 7 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.