ERICSSON LM TELEPHONE CO vs Nokia Corporation, two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Ericsson earns 26% on equity and 10.3% on assets; Nokia earns 3.1% and 1.8%. That gap, between two companies selling similar gear into the same carrier budgets, is execution measured in public. The margins repeat the verdict, 16.3% operating against 4.5%. The market then prices them backwards from the scoreboard: Nokia at 99.7 times its thin earnings against Ericsson's 13.5, because a repair story is valued on where it might go while a steady operator is valued on where it is. Nokia converts 3.2% of its price to free cash, Ericsson 7.9%. The pair is a referendum on whether margin repair deserves seven times the price of margin possession.
Comparison updated 2026-07-10.
| Metric | ERIC | NOK |
|---|---|---|
| Price | $10.96 | $13.00 |
| Market cap | $36.5B | $70.4B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Mature |
| P/E | 13.5 | 99.7 |
| P/B | 3.48 | 3.08 |
| P/S | 1.62 | 3.26 |
| EV/EBITDA | 7.1 | 29.6 |
| Revenue growth | +0.9% | -2.4% |
| Gross margin | 47.6% | 43.5% |
| Operating margin | 16.3% | 4.5% |
| Net margin | 12.1% | 3.3% |
| Return on equity | 26.0% | 3.1% |
| Return on assets | 10.3% | 1.8% |
| Return on invested capital | 26.3% | 2.9% |
| FCF yield | 7.9% | 3.2% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.29 | 1.58 |
| Altman Z (solvency) | 7.77 | 3.21 |
| 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.