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Ericsson (ERIC) vs Zebra Technologies Corporation (ZBRA)

Ericsson and Zebra Technologies Corporation are both Communication Equipment companies. Ericsson is the larger, with a market value of $31.3B against $15.2B — 2.1× the size. Ericsson trades at the lower P/E: 17.2× against 25.9×. Zebra Technologies Corporation grew revenue faster over the last twelve months: 16.9% against 3.44%. Zebra Technologies Corporation has the higher net margin (9.80% vs 8.18%) and the lower return on invested capital (9.57% vs 19.1%). Across the 22 metrics below, Ericsson leads on 15 and Zebra Technologies Corporation on 7.

Valuation

Metric ERIC ZBRA Communication Equipment median
P/E 17.20 25.86 29.86
P/S 1.40 2.49 1.68
P/B 2.97 4.28 1.72
Price to free cash flow 12.02 15.47 21.71
EV/EBITDA 8.76 14.90 14.04
EV/Sales 1.31 2.88 1.76
Earnings yield 5.82% 3.87% (0.87%)
Free cash flow yield 8.32% 6.47% 0.68%

Profitability

Metric ERIC ZBRA Communication Equipment median
Gross margin 46.86% 48.90% 39.34%
Operating margin 11.62% 14.85% 2.43%
Net margin 8.18% 9.80% (0.64%)
Free cash flow margin 11.65% 16.09% 0.27%
Return on equity 20.55% 16.46% 0.00%
Return on assets 6.57% 7.13% (0.10%)
Return on invested capital 19.12% 9.57% 1.29%

Growth

Metric ERIC ZBRA Communication Equipment median
Revenue growth (TTM) 3.44% 16.86% 9.66%
EPS growth (last fiscal year) 0.00% (19.65%) 31.29%
Revenue growth, 5-year CAGR (0.92%) 3.94% 4.92%
Net income growth, 5-year CAGR 8.80% (3.63%) 0.00%

Health

Metric ERIC ZBRA Communication Equipment median
Debt to equity 0.34 0.72 0.05
Current ratio 1.16 0.57 1.99
Net debt to EBITDA (0.50) 2.56 0.93

Dividend

Metric ERIC ZBRA Communication Equipment median
Dividend yield 3.04% — 1.10%
Payout ratio 0.52 — 0.44

Size

Metric ERIC ZBRA Communication Equipment median
Market cap 31.27b 15.15b 495.24m

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