Comparing Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) & Simlatus (NASDAQ:SIML)

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) and Simlatus (OTCMKTS:SIML) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Telefonaktiebolaget LM Ericsson and Simlatus’ 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%
Simlatus N/A N/A -32,014.61%

Dividends

Telefonaktiebolaget LM Ericsson pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. Simlatus 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.

Valuation & Earnings

This table compares Telefonaktiebolaget LM Ericsson and Simlatus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telefonaktiebolaget LM Ericsson $24.28 billion 1.09 -$751.60 million $0.03 267.33
Simlatus $20,000.00 47.61 -$4.39 million N/A N/A

Simlatus has lower revenue, but higher earnings than Telefonaktiebolaget LM Ericsson.

Volatility & Risk

Telefonaktiebolaget LM Ericsson has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Simlatus has a beta of 3.22, suggesting that its stock price is 222% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Telefonaktiebolaget LM Ericsson and Simlatus, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonaktiebolaget LM Ericsson 1 5 4 1 2.45
Simlatus 0 0 0 0 N/A

Telefonaktiebolaget LM Ericsson presently has a consensus target price of $9.87, indicating a potential upside of 23.02%. Given Telefonaktiebolaget LM Ericsson’s higher possible upside, analysts plainly believe Telefonaktiebolaget LM Ericsson is more favorable than Simlatus.

Institutional & Insider Ownership

8.1% of Telefonaktiebolaget LM Ericsson shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Telefonaktiebolaget LM Ericsson beats Simlatus on 9 of the 13 factors compared between the two stocks.

Telefonaktiebolaget LM Ericsson Company Profile

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.

Simlatus Company Profile

Simlatus Corporation develops, manufactures, and markets audio and video broadcast equipment and software worldwide. The company offers a range of broadcast products, such as switchers, controllers, protection switches, HD and analog routers, and audio distribution equipment, as well as SoundPal and SyncPal audio/video signaling products. It sells its products through a distribution network of audio/video equipment retailers. The company was formerly known as Grid Petroleum Corporation and changed its name to Simlatus Corporation in April 2016. Simlatus Corporation was founded in 2006 and is based in Grass Valley, California.

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