ERICSSON LM TELEPHONE CO vs FABRINET, two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Nothing in these numbers announces growth outright, so the multiples carry the forecast: Fabrinet at 45.2 times earnings is priced for the optical-manufacturing boom to keep compounding, Ericsson at 13.5 times for telecom equipment demand to stay flat at best. The economics argue the other way around: Ericsson earns the wider margins, 16.3% operating against 9.9%, and converts 7.9% of its price into free cash where Fabrinet manages 0.2%. Fabrinet's 11.9% gross margin is contract manufacturing honest about itself; its premium multiple is entirely about whose orders it builds. Both are debt-free. One price bets on the customer list, the other on nobody in particular.
Comparison updated 2026-07-10.
| Metric | ERIC | FN |
|---|---|---|
| Price | $10.96 | $525.20 |
| Market cap | $36.5B | $19.1B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Growth |
| P/E | 13.5 | 45.2 |
| P/B | 3.48 | 8.27 |
| P/S | 1.62 | 4.50 |
| EV/EBITDA | 7.1 | 43.3 |
| Revenue growth | +0.9% | +29.4% |
| Gross margin | 47.6% | 11.9% |
| Operating margin | 16.3% | 9.9% |
| Net margin | 12.1% | 9.9% |
| Return on equity | 26.0% | 18.3% |
| Return on assets | 10.3% | 12.0% |
| Return on invested capital | 26.3% | 16.9% |
| FCF yield | 7.9% | 0.2% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.29 | 2.55 |
| Altman Z (solvency) | 7.77 | 8.90 |
| Piotroski F (quality) | 7 / 9 | 5 / 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.