ERICSSON LM TELEPHONE CO vs MOTOROLA SOLUTIONS, INC., two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Neither top line is racing, so the multiples describe belief rather than momentum: Motorola Solutions at 32.5 times earnings is priced as a public-safety annuity with pricing power, Ericsson at 13.5 times as a telecom vendor whose customers spend reluctantly. The margin gap is modest, 19.3% operating against 16.3%, and the returns tell the leverage story: Motorola's 81.6% return on equity rides on 3.5 turns of debt against a thin equity base (11% on assets is the honest read), while Ericsson earns 26% on equity unlevered. Ericsson doubles Motorola's free-cash yield, 7.9% to 3.7%. The premium is for the niche; the discount is for the industry.
Comparison updated 2026-07-10.
| Metric | ERIC | MSI |
|---|---|---|
| Price | $10.96 | $402.96 |
| Market cap | $36.5B | $67.7B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +20.5% |
| P/E | 13.5 | 32.5 |
| P/B | 3.48 | 26.41 |
| P/S | 1.62 | 5.70 |
| EV/EBITDA | 7.1 | 22.2 |
| Revenue growth | +0.9% | +8.2% |
| Gross margin | 47.6% | 50.2% |
| Operating margin | 16.3% | 19.3% |
| Net margin | 12.1% | 17.6% |
| Return on equity | 26.0% | 81.5% |
| Return on assets | 10.3% | 10.9% |
| Return on invested capital | 26.3% | 21.2% |
| FCF yield | 7.9% | 3.7% |
| Dividend yield | — | 1.1% |
| Debt / equity | 0.00 | 3.50 |
| Current ratio | 1.29 | 1.07 |
| Altman Z (solvency) | 7.77 | 6.93 |
| Piotroski F (quality) | 7 / 9 | 4 / 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.