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ERIC vs MSFT

ERIC
Telefonaktiebolaget LM Ericsson (publ)
NEUTRAL
Price
$11.85
Market Cap
$39.5B
Sector
Technology
AI Confidence
90%
MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
ERIC
13.17
MSFT
23.42
Forward P/E
ERIC
17.24
MSFT
19.86
P/B Ratio
ERIC
0.38
MSFT
7.11
P/S Ratio
ERIC
--
MSFT
9.11
EV/EBITDA
ERIC
--
MSFT
16.05

Profitability

Gross Margin
ERIC
48.14%
MSFT
68.59%
Operating Margin
ERIC
0.0%
MSFT
47.09%
Profit Margin
ERIC
12.01%
MSFT
39.04%
ROE
ERIC
28.26%
MSFT
34.39%
ROA
ERIC
7.08%
MSFT
14.86%

Growth

Revenue Growth
ERIC
-5.0%
MSFT
16.7%
Earnings Growth
ERIC
79.2%
MSFT
59.8%

Financial Health

Debt/Equity
ERIC
0.37
MSFT
0.32
Current Ratio
ERIC
1.29
MSFT
1.39
Quick Ratio
ERIC
1.03
MSFT
1.24

Dividends

Dividend Yield
ERIC
2.76%
MSFT
0.97%
Payout Ratio
ERIC
33.51%
MSFT
21.28%

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%)
MSFT BULLISH

Microsoft exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial stability. While the stock is currently experiencing a severe technical downtrend (0/100) and significant 6-month price depreciation (-28.6%), the current price of $374.33 sits well below the growth-based intrinsic value of $471.41 and the analyst target of $587.31. Exceptional earnings growth (59.8% YoY) and high operating margins (47.09%) suggest that the current price correction presents a value opportunity despite bearish insider sentiment.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional profitability with a 39.04% profit margin and 47.09% operating margin
Robust earnings growth (59.8% YoY) and consistent history of beating estimates
Risks
Severe short-term technical bearishness (0/100 trend score)
Bearish insider activity with $32.64M in net sales over the last 6 months
High Price-to-Book ratio (7.11) indicating a premium over book value

Compare Another Pair

ERIC vs MSFT: Head-to-Head Comparison

This page compares Telefonaktiebolaget LM Ericsson (publ) (ERIC) and Microsoft Corporation (MSFT) 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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