ERICSSON LM TELEPHONE CO vs QUALCOMM INC/DE, two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Growth is the quiet variable neither income statement states, and the multiples fill it in: Qualcomm at 20.2 times earnings carries a modest premium over Ericsson's 13.5, with the market crediting handset silicon and licensing more future than carrier equipment. The current economics side with Qualcomm outright, a 23.5% net margin against 12.1% and a 38.3% return on equity against 26%. Both throw off serious cash, free-cash yields of 6.2% and 7.9%, and Qualcomm adds a 1.8% dividend. These are two of the cheaper large names in communications hardware, priced for stagnation they have not been showing. The difference is which customer you distrust less: carriers or phone makers.
Comparison updated 2026-07-10.
| Metric | ERIC | QCOM |
|---|---|---|
| Price | $10.96 | $188.62 |
| Market cap | $36.5B | $202.2B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +28.6% |
| P/E | 13.5 | 20.2 |
| P/B | 3.48 | 7.41 |
| P/S | 1.62 | 4.55 |
| EV/EBITDA | 7.1 | 18.1 |
| Revenue growth | +0.9% | +5.5% |
| Gross margin | 47.6% | — |
| Operating margin | 16.3% | 21.8% |
| Net margin | 12.1% | 23.5% |
| Return on equity | 26.0% | 38.3% |
| Return on assets | 10.3% | 18.3% |
| Return on invested capital | 26.3% | 21.1% |
| FCF yield | 7.9% | 6.2% |
| Dividend yield | — | 1.8% |
| Debt / equity | 0.00 | 0.56 |
| Current ratio | 1.29 | 2.37 |
| Altman Z (solvency) | 7.77 | 5.91 |
| Piotroski F (quality) | 7 / 9 | 6 / 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.