Analyzing ERF Wireless (OTCMKTS:ERFB) and Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)

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

Valuation & Earnings

This table compares Telefonaktiebolaget LM Ericsson (publ) and ERF Wireless’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefonaktiebolaget LM Ericsson (publ)	$249.53 billion	0.10	-$2.49 billion	($0.99)	-7.29
ERF Wireless	N/A	N/A	N/A	($1.83)	N/A

ERF Wireless has lower revenue, but higher earnings than Telefonaktiebolaget LM Ericsson (publ). Telefonaktiebolaget LM Ericsson (publ) is trading at a lower price-to-earnings ratio than ERF Wireless, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Telefonaktiebolaget LM Ericsson (publ) and ERF Wireless, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefonaktiebolaget LM Ericsson (publ)	2	1	1	0	1.75
ERF Wireless	0	0	0	0	N/A

Telefonaktiebolaget LM Ericsson (publ) presently has a consensus target price of $5.90, suggesting a potential downside of 18.28%.

Profitability

This table compares Telefonaktiebolaget LM Ericsson (publ) and ERF Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefonaktiebolaget LM Ericsson (publ)	-14.13%	11.39%	3.79%
ERF Wireless	N/A	N/A	N/A

Insider & Institutional Ownership

8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are held by institutional investors. Comparatively, 0.1% of ERF Wireless shares are held by institutional investors. 5.8% of ERF Wireless shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Telefonaktiebolaget LM Ericsson (publ) beats ERF Wireless on 6 of the 9 factors compared between the two stocks.

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other. The Networks segment offers radio access network (RAN) solutions for various network spectrum bands, including purpose-built and open RAN-prepared hardware and software. This segment also provides cloud RAN; transport solutions; passive and active antennas; and a range of service portfolios covering network deployment and support. The Cloud Software and Services segment offers core networks, business and operational support systems, network design and optimization, and managed network services. The Enterprise segment offers a global communications platform, including cloud-based unified communications as a service, contact center as a service, and communications platform as a service; enterprise wireless solutions comprising private wireless networks and wireless wan pre-packaged solutions; and technologies and new business solutions, such as mobile financial services, security solutions, and advertising services. The Other segment includes Redbee media that prepares and distributes live and video services for broadcasters, sports leagues, and communications service providers. It offers its services through wholesalers and distributors. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

About ERF Wireless

ERF Wireless, Inc. provides wireless broadband access solutions for the energy industry in North America. The company conducts its operations through Energy Broadband, Inc., Wireless Bundled Services Division, and Enterprise Network Services segments. It offers wireless bandwidth and related support services, including nomadic terrestrial wireless broadband circuit connectivity to the wellsite; wellsite communications equipment rental; wellsite IT support services; wellsite IT services over broadband; network monitoring and maintenance:; layer 2 secure communications connectivity products rental and services; fixed site terrestrial wireless broadband connectivity; network design and construction; production field supervisory control and data acquisition; and midstream communications, monitoring, and security solutions for the oil and gas industry. The company also provides enterprise-level wireless bandwidth product and services, such as design and implementation of custom Internet wireless bandwidth solutions, including long-term maintenance and network monitoring; reselling arrangements; and secure connectivity services through its CryptoVue product to the regional banking, healthcare, and educational sectors primarily in the rural areas of North America. In addition, it offers commercial and residential wireless bandwidth products and services comprising -speed Internet, voice over Internet protocol services, network monitoring and maintenance services, and video services to commercial businesses and residential customers. The company was founded in 1986 and is headquartered in League City, Texas.