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Ericsson (ERIC) vs Ubiquiti Inc. (UI)

Ericsson and Ubiquiti Inc. are both Communication Equipment companies. Ericsson and Ubiquiti Inc. are of similar size ($31.3B and $31.1B). Ericsson trades at the lower P/E: 17.2× against 32.4×. Ubiquiti Inc. grew revenue faster over the last twelve months: 27.2% against 3.44%. Ubiquiti Inc. has the higher net margin (29.3% vs 8.18%) and the higher return on invested capital (89.4% vs 19.1%). Both pay a dividend; Ericsson yields more (3.04% vs 0.66%). Across the 23 metrics below, Ubiquiti Inc. leads on 13 and Ericsson on 10.

Valuation

Metric ERIC UI Communication Equipment median
P/E 17.20 32.44 29.86
P/S 1.40 9.52 1.68
P/B 2.97 21.65 1.72
Price to free cash flow 12.02 34.30 21.71
EV/EBITDA 8.76 25.71 14.04
EV/Sales 1.31 9.47 1.76
Earnings yield 5.82% 3.08% (0.87%)
Free cash flow yield 8.32% 2.92% 0.68%

Profitability

Metric ERIC UI Communication Equipment median
Gross margin 46.86% 46.16% 39.34%
Operating margin 11.62% 36.21% 2.43%
Net margin 8.18% 29.33% (0.64%)
Free cash flow margin 11.65% 27.76% 0.27%
Return on equity 20.55% 91.09% 0.00%
Return on assets 6.57% 52.41% (0.10%)
Return on invested capital 19.12% 89.37% 1.29%

Growth

Metric ERIC UI Communication Equipment median
Revenue growth (TTM) 3.44% 27.22% 9.66%
EPS growth (last fiscal year) 0.00% 34.78% 31.29%
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 0.34 0.00 0.05
Current ratio 1.16 2.93 1.99
Net debt to EBITDA (0.50) (0.51) 0.93

Dividend

Metric ERIC UI Communication Equipment median
Dividend yield 3.04% 0.66% 1.10%
Payout ratio 0.52 0.21 0.44

Size

Metric ERIC UI Communication Equipment median
Market cap 31.27b 31.11b 495.24m

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