Stock Comparison
ERIC vs NOK
Telefonaktiebolaget LM Ericsson vs Nokia Oyj
Who's the better investment? Let's break it down.
The Verdict
ERIC takes this one.
ERIC edges out the competition with a 2.5-point advantage. Not a blowout, but the numbers favor ERIC.
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Valuation
ERIC
Metric
NOK
Market Cap
P/E Ratio
Lower may indicate better value
Forward P/E
Price/Book
EV/EBITDA
Profitability & Growth
ERIC
Metric
NOK
Profit Margin
Gross Margin
Operating Margin
Return on Equity
Return on Assets
Revenue Growth
EPS
Financial Health
ERIC
Metric
NOK
Debt-to-Equity
Lower = less leverage
Current Ratio
Above 1.0 is healthy
Beta
Lower = less volatile
Dividend Yield
Risk Comparison
ERIC
What Could Go Wrong
The biggest risk for Ericsson is a sustained global slowdown in telecommunications capital expenditure by its primary mobile network operator customers. If global carrier spending contracts by more th...
Red Flags
- 🚩Reliance on cyclical carrier capital expenditure, making revenue growth highly susceptible to extern...
- 🚩Intense pricing pressure in the highly competitive telecom equipment market, continuously challengin...
- 🚩Lingering regulatory and compliance risks stemming from past legal issues (though currently absent f...
NOK
What Could Go Wrong
The biggest risk for Nokia right now is its significantly stretched valuation (P/E ~77.6) relative to its moderate revenue growth (+4.6% YoY) and the median analyst price target ($6.00). If Q2 2026 ea...
Red Flags
- 🚩Significant Valuation Disconnect: Current price $13.81 is ~2.3x the median analyst target of $6.00, ...
- 🚩Moderate Overall Revenue Growth: +4.6% YoY revenue growth in Q1 2026 for a company with a $66.98B ma...
- 🚩Layoffs in China: Nearly 2,000 employees laid off in Greater China, indicating challenges in a criti...
Competitive Moat
ERIC
Rating
🛡️ Narrow
Trend
➡️ Stable
NOK
Rating
🛡️ Narrow
Trend
➡️ Stable
Investment Thesis
If Ericsson, now with a realistic $46B market cap, successfully expands its enterprise 5G and private network revenue stream to represent >15% of total sales by FY2028 (up from ~7-8% today), alongside sustained 5G core network modernization contracts, then its valuation multiple could expand to reflect a more diversified and higher-growth profile, potentially reaching 2-2.5x EV/Sales, representing...
Full ERIC AnalysisIf Nokia effectively leverages its strategic investments in advanced optical networking and AI-driven network services (e.g., Allentown expansion and Infinera synergies) to accelerate segment-specific revenue growth to double-digits (15-20% YoY) over the next 18-24 months while maintaining stringent cost control (evidenced by recent layoffs), then the company could sustain its profitability improv...
Full NOK AnalysisPrice Targets & Strategy
Price Targets & Entry/Exit Strategy
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Growth Catalysts
Growth Catalysts Comparison
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Market Sentiment
Market Sentiment Analysis
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The Deep Dive
Telefonaktiebolaget LM Ericsson, previously assessed with a colossal market cap, is now realistically valued at approximately $46.26B (based on current price $13.72 and 3.37B shares outstanding). This significantly alters its 10x growth potential within 3-5 years, making it more plausible, though still challenging for a large-cap. The company maintains a strong competitive position in the essential telecom infrastructure sector, bolstered by ongoing strategic share buybacks (SEK 15B program) and...
Full ERIC AnalysisNokia continues its operational turnaround, evidenced by robust Q1 2026 results including +25.2% YoY net income growth and +23.7% YoY EPS growth. Strategic investments, such as the $30M Pennsylvania expansion, signal a focus on high-growth areas like optical networking and advanced packaging. However, Nokia operates as a large-cap company in a mature telecom infrastructure market, with overall Q1 revenue growth at a modest +4.6% YoY. While improving profitability is positive, the company's signi...
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Not Financial Advice
This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.