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ERIC vs FICO

ERIC
Telefonaktiebolaget LM Ericsson (publ)
NEUTRAL
Price
$11.85
Market Cap
$39.5B
Sector
Technology
AI Confidence
90%
FICO
Fair Isaac Corporation
BULLISH
Price
$1741.37
Market Cap
$41.29B
Sector
Technology
AI Confidence
88%

Valuation

P/E Ratio
ERIC
13.17
FICO
65.79
Forward P/E
ERIC
17.24
FICO
46.85
P/B Ratio
ERIC
0.38
FICO
-23.7
P/S Ratio
ERIC
--
FICO
20.74
EV/EBITDA
ERIC
--
FICO
46.54

Profitability

Gross Margin
ERIC
48.14%
FICO
82.23%
Operating Margin
ERIC
0.0%
FICO
48.1%
Profit Margin
ERIC
12.01%
FICO
32.75%
ROE
ERIC
28.26%
FICO
--
ROA
ERIC
7.08%
FICO
32.62%

Growth

Revenue Growth
ERIC
-5.0%
FICO
13.6%
Earnings Growth
ERIC
79.2%
FICO
17.9%

Financial Health

Debt/Equity
ERIC
0.37
FICO
--
Current Ratio
ERIC
1.29
FICO
0.83
Quick Ratio
ERIC
1.03
FICO
0.78

Dividends

Dividend Yield
ERIC
2.76%
FICO
--
Payout Ratio
ERIC
33.51%
FICO
0.0%

AI Verdict

ERIC NEUTRAL

ERIC shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 13.2
Undervalued vs Graham Number ($24.97)
Low debt with D/E ratio of 0.37
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-5.0%)
FICO BULLISH

FICO demonstrates elite profitability and consistent earnings outperformance, supported by strong double-digit revenue and earnings growth, positioning it favorably within the high-margin software application sector. Despite a 25% pullback over the past year, the stock shows signs of stabilization with a 6.4% rebound in the last six months and positive near-term momentum. Valuation remains rich but justifiable given superior margins—particularly the 48.1% operating margin and 82.2% gross margin—relative to peers trading at higher multiples despite weaker fundamentals. Analysts reflect confidence with a $2016 target implying 15.7% upside, though insider selling activity presents a notable counter-signal.

Strengths
Exceptional profitability with 48.1% operating margin, significantly above sector average of 16.85%
High gross margin of 82.23%, indicative of scalable, asset-light software business model
Consistent earnings beat streak: 3 out of last 4 quarters beat estimates, with 5-year history of frequent positive surprises (average +15% surprise in 2020–2022)
Risks
Elevated valuation with P/E of 65.8 and Price/Sales of 20.7, creating vulnerability to multiple contraction in rising rate environments
Negative Price/Book of -23.70 suggests intangible-heavy balance sheet and potential accounting complexity or stock-based compensation drag
Insider selling pressure: $54.5M in CEO sales over last 6 months signals lack of confidence at the top

Compare Another Pair

ERIC vs FICO: Head-to-Head Comparison

This page compares Telefonaktiebolaget LM Ericsson (publ) (ERIC) and Fair Isaac Corporation (FICO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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