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ERIC vs NVDA

ERIC
Telefonaktiebolaget LM Ericsson (publ)
NEUTRAL
Price
$11.85
Market Cap
$39.5B
Sector
Technology
AI Confidence
90%
NVDA
NVIDIA Corporation
BULLISH
Price
$182.08
Market Cap
$4.43T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
ERIC
13.17
NVDA
37.16
Forward P/E
ERIC
17.24
NVDA
16.38
P/B Ratio
ERIC
0.38
NVDA
28.13
P/S Ratio
ERIC
--
NVDA
20.49
EV/EBITDA
ERIC
--
NVDA
32.83

Profitability

Gross Margin
ERIC
48.14%
NVDA
71.07%
Operating Margin
ERIC
0.0%
NVDA
65.02%
Profit Margin
ERIC
12.01%
NVDA
55.6%
ROE
ERIC
28.26%
NVDA
101.48%
ROA
ERIC
7.08%
NVDA
51.19%

Growth

Revenue Growth
ERIC
-5.0%
NVDA
73.2%
Earnings Growth
ERIC
79.2%
NVDA
95.6%

Financial Health

Debt/Equity
ERIC
0.37
NVDA
0.07
Current Ratio
ERIC
1.29
NVDA
3.9
Quick Ratio
ERIC
1.03
NVDA
3.14

Dividends

Dividend Yield
ERIC
2.76%
NVDA
0.02%
Payout Ratio
ERIC
33.51%
NVDA
0.82%

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%)
NVDA BULLISH

NVDA exhibits strong financial health with a Piotroski F-Score of 7/9, indicating robust operational efficiency and solvency. While the current price of $182.08 is significantly above the Graham Number ($26.71) and the growth-based intrinsic value ($144.55), the stock is fundamentally undervalued relative to its growth, as evidenced by a PEG ratio of 0.72 and a highly attractive Forward P/E of 16.38. The company's elite profitability margins (55.6% profit margin) and minimal debt (0.07 D/E) provide a massive cushion for volatility. Despite bearish insider sentiment and short-term technical weakness, the long-term growth trajectory remains exceptionally strong.

Strengths
Hyper-growth trajectory with 95.6% YoY earnings growth
Elite profitability with a 65.02% operating margin
Exceptional balance sheet strength (Debt/Equity of 0.07 and Current Ratio of 3.90)
Risks
Significant insider selling totaling $208.13M in the last 6 months
Bearish short-term technical trend (0/100 score)
High Price-to-Book ratio (28.13) indicating a steep premium over assets

Compare Another Pair

ERIC vs NVDA: Head-to-Head Comparison

This page compares Telefonaktiebolaget LM Ericsson (publ) (ERIC) and NVIDIA Corporation (NVDA) 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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