Head to Head Contrast: Franklin Wireless (NASDAQ:FKWL) vs. Ericsson (NASDAQ:ERIC)

Franklin Wireless (NASDAQ:FKWL) and Ericsson (NASDAQ:ERIC) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Franklin Wireless and Ericsson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Wireless	1	0	0	0	1.00
Ericsson	4	5	1	0	1.70

Ericsson has a consensus target price of $9.60, suggesting a potential downside of 14.13%. Given Ericsson’s stronger consensus rating and higher probable upside, analysts plainly believe Ericsson is more favorable than Franklin Wireless.

Profitability

This table compares Franklin Wireless and Ericsson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Wireless	-12.99%	-1.70%	-1.20%
Ericsson	8.31%	20.89%	7.73%

Institutional and Insider Ownership

18.5% of Franklin Wireless shares are held by institutional investors. Comparatively, 8.0% of Ericsson shares are held by institutional investors. 25.7% of Franklin Wireless shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Franklin Wireless has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Ericsson has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Franklin Wireless and Ericsson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Wireless	$36.51 million	0.71	-$4.74 million	($0.40)	-5.47
Ericsson	$24.19 billion	1.56	$2.91 billion	$0.61	18.33

Ericsson has higher revenue and earnings than Franklin Wireless. Franklin Wireless is trading at a lower price-to-earnings ratio than Ericsson, indicating that it is currently the more affordable of the two stocks.

Summary

Ericsson beats Franklin Wireless on 12 of the 14 factors compared between the two stocks.

About Franklin Wireless

Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.

About Ericsson

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other. The Networks segment offers radio access network (RAN) solutions for various network spectrum bands, including purpose-built and open RAN-prepared hardware and software. This segment also provides cloud RAN; transport solutions; passive and active antennas; and a range of service portfolios covering network deployment and support. The Cloud Software and Services segment offers core networks, business and operational support systems, network design and optimization, and managed network services. The Enterprise segment offers a global communications platform, including cloud-based unified communications as a service, contact center as a service, and communications platform as a service; enterprise wireless solutions comprising private wireless networks and wireless wan pre-packaged solutions; and technologies and new business solutions, such as mobile financial services, security solutions, and advertising services. The Other segment includes Redbee media that prepares and distributes live and video services for broadcasters, sports leagues, and communications service providers. It offers its services through wholesalers and distributors. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.