ERICSSON LM TELEPHONE CO vs UBIQUITI INC., two Communication Equipment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
One number splits this pair: 36.9%, Ubiquiti's operating margin, more than double Ericsson's 16.3% in the same industry classification. Ubiquiti gets there by selling prosumer networking gear with almost no sales force; Ericsson negotiates with the world's carriers for every contract. The lean model earns a 54.9% return on assets, remarkable anywhere, and the market pays 33.9 times earnings for it against 13.5 for Ericsson. Ericsson's rebuttal is cash today, a 7.9% free-cash yield to Ubiquiti's 2.3%, plus a debt-free balance sheet both happen to share. A distribution model, it turns out, can be worth twenty multiple points.
Comparison updated 2026-07-10.
| Metric | ERIC | UI |
|---|---|---|
| Price | $10.96 | $526.55 |
| Market cap | $36.5B | $31.9B |
| Sector | Communication Equipment | Communication Equipment |
| Stage | Mature | Growth |
| Implied growth (priced in) | — | +40.3% |
| P/E | 13.5 | 33.9 |
| P/B | 3.48 | 26.53 |
| P/S | 1.62 | 10.30 |
| EV/EBITDA | 7.1 | 28.4 |
| Revenue growth | +0.9% | +34.4% |
| Gross margin | 47.6% | 47.0% |
| Operating margin | 16.3% | 36.9% |
| Net margin | 12.1% | 30.4% |
| Return on equity | 26.0% | 78.4% |
| Return on assets | 10.3% | 54.9% |
| Return on invested capital | 26.3% | 74.2% |
| FCF yield | 7.9% | 2.3% |
| Dividend yield | — | 0.5% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.29 | 3.56 |
| Altman Z (solvency) | 7.77 | 10.00 |
| Piotroski F (quality) | 7 / 9 | 5 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
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.