Analyzing Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) & COMARCO (NASDAQ:CMRO)
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) and COMARCO (OTCMKTS:CMRO) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
8.1% of Telefonaktiebolaget LM Ericsson shares are held by institutional investors. 23.0% of COMARCO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Telefonaktiebolaget LM Ericsson and COMARCO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telefonaktiebolaget LM Ericsson||0.16%||6.37%||2.05%|
Risk and Volatility
Telefonaktiebolaget LM Ericsson has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, COMARCO has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Earnings and Valuation
This table compares Telefonaktiebolaget LM Ericsson and COMARCO’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Telefonaktiebolaget LM Ericsson||$24.28 billion||1.11||-$751.60 million||$0.03||270.67|
COMARCO has lower revenue, but higher earnings than Telefonaktiebolaget LM Ericsson.
Telefonaktiebolaget LM Ericsson pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. COMARCO does not pay a dividend. Telefonaktiebolaget LM Ericsson pays out 233.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings for Telefonaktiebolaget LM Ericsson and COMARCO, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telefonaktiebolaget LM Ericsson||1||5||4||1||2.45|
Telefonaktiebolaget LM Ericsson currently has a consensus price target of $9.87, suggesting a potential upside of 21.50%. Given Telefonaktiebolaget LM Ericsson’s higher possible upside, equities research analysts plainly believe Telefonaktiebolaget LM Ericsson is more favorable than COMARCO.
Telefonaktiebolaget LM Ericsson beats COMARCO on 9 of the 13 factors compared between the two stocks.
About Telefonaktiebolaget LM Ericsson
Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment provides mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support. The Digital Services segment offers products and services for service providers in the areas of business support systems, operations support systems, cloud core, cloud communication, network functions virtualization, and cloud infrastructure, as well as consulting, learning, and testing services. The Managed Services segment provides vendor agnostic services, including networks and IT managed, application development and modernization, and network design and optimization services to manage service providers networks. The Emerging Business and Other segment consists of emerging businesses; iconectiv that offers software-based interconnection solutions; media solutions; and Red Bee Media, which consists of technology enabled services to manage the play-out platform for broadcasters and content owners. It operates in Europe and Latin America, the Middle East and Africa, North America, North East Asia, South East Asia, Oceania, and India. The company was founded in 1876 and is headquartered in Stockholm, Sweden.
Comarco, Inc. focuses on the monetization of its patent portfolio. The company intends to expand, protect, and monetize its patent portfolio through potential sale or licensing. Comarco, Inc. was founded in 1960 and is headquartered in Laguna Niguel, California.
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