Ericsson (ERIC) & Vuzix (VUZI) Financial Review

Ericsson (NASDAQ: ERIC) and Vuzix (NASDAQ:VUZI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Valuation & Earnings

This table compares Ericsson and Vuzix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ericsson $23.60 billion 0.89 -$4.13 billion ($0.47) -13.38
Vuzix $5.54 million 29.91 -$19.63 million ($1.02) -5.95



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

Profitability

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

Net Margins Return on Equity Return on Assets
Ericsson -17.57% -11.30% -4.81%
Vuzix -354.51% -123.93% -99.72%

Dividends

Ericsson pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Vuzix does not pay a dividend. Ericsson pays out -17.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ericsson and Vuzix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ericsson 3 7 1 0 1.82
Vuzix 0 0 3 0 3.00

Ericsson currently has a consensus price target of $4.91, suggesting a potential downside of 21.90%. Vuzix has a consensus price target of $10.50, suggesting a potential upside of 72.98%. Given Vuzix’s stronger consensus rating and higher probable upside, analysts plainly believe Vuzix is more favorable than Ericsson.

Volatility & Risk

Ericsson has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

8.3% of Ericsson shares are held by institutional investors. Comparatively, 8.1% of Vuzix shares are held by institutional investors. 18.4% of Vuzix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Ericsson Company Profile

Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for networks, IT and cloud, and media markets worldwide. It operates through four segments: Networks, Digital Services, Managed Services, 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 operations support systems and business support systems; packet core and communication; network functions virtualization and cloud infrastructure; application development and modernization; and consulting services. The Managed Services segment provides vendor agnostic services, including networks and IT managed, and network design and optimization services to manage service provider's networks. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Vuzix Company Profile

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. The company's products are worn like eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. Its products include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; augmented reality products, which provide the user a live, direct or indirect, view of a physical, and real-world environment; and video viewing glasses as mobile displays for entertainment and gaming for on-the-go users, as well as support for stepping into virtual worlds, simulations, and virtual reality gaming. The company sells its products under the Vuzix brand name. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, resellers, and Web stores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is based in West Henrietta, New York.

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