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Ericsson (ERIC) vs Ubiquiti Inc. (UI)

Ericsson and Ubiquiti Inc. are both Communication Equipment companies. Ubiquiti Inc. is the larger, with a market value of $37.4B against $32.6B — 1.1× the size. Ericsson trades at the lower P/E: 13.6× against 37.8×. Ubiquiti Inc. grew revenue faster over the last twelve months: 27.2% against 2.26%. Ubiquiti Inc. has the higher net margin (29.3% vs 10.6%) and the higher return on invested capital (89.4% vs 25.1%). Both pay a dividend; Ericsson yields more (3.02% vs 0.57%). Across the 23 metrics below, Ubiquiti Inc. leads on 13 and Ericsson on 10.

Valuation

Metric ERIC UI Communication Equipment median
P/E 13.55 37.84 33.49
P/S 1.44 11.10 1.81
P/B 3.11 25.24 1.96
Price to free cash flow 11.36 40.00 22.91
EV/EBITDA 7.49 30.01 11.76
EV/Sales 1.34 11.05 2.02
Earnings yield 7.38% 2.64% (0.54%)
Free cash flow yield 8.81% 2.50% 1.31%

Profitability

Metric ERIC UI Communication Equipment median
Gross margin 46.99% 46.16% 39.48%
Operating margin 14.52% 36.21% 2.39%
Net margin 10.61% 29.33% (0.80%)
Free cash flow margin 12.72% 27.76% 1.39%
Return on equity 0.00% 91.09% (1.91%)
Return on assets 8.76% 52.41% (0.20%)
Return on invested capital 25.09% 89.37% 0.72%

Growth

Metric ERIC UI Communication Equipment median
Revenue growth (TTM) 2.26% 27.22% 11.48%
EPS growth (last fiscal year) 0.00% 34.78% 30.93%
Revenue growth, 5-year CAGR (0.92%) 11.52% 4.92%
Net income growth, 5-year CAGR 8.80% 9.27% 0.00%

Health

Metric ERIC UI Communication Equipment median
Debt to equity 0.30 0.00 0.06
Current ratio 1.12 2.93 2.01
Net debt to EBITDA (0.50) (0.51) 0.90

Dividend

Metric ERIC UI Communication Equipment median
Dividend yield 3.02% 0.57% 1.04%
Payout ratio 0.41 0.21 0.34

Size

Metric ERIC UI Communication Equipment median
Market cap 32.61b 37.41b 532.08m

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