Ericsson vs Hewlett Packard Enterprise

Ericsson and Hewlett Packard Enterprise are presented here in a neutral comparison. This page examines their business models, financial performance, and market context to help readers understand how each company positions itself. Educational content, not financial advice.

Ericsson and Hewlett Packard Enterprise are presented here in a neutral comparison. This page examines their business models, financial performance, and market context to help readers understand how e...

Comparison Snapshot

Key Financial Metrics

ERIC

Metric

HPE

$37.25B

Market Cap

$29.37B

-22.70%

Potential Profit

18.33%

Hold

Analyst Rating

Buy

Why It's Moving

Ericsson Surges to 52-Week High on Earnings Beat and Value Appeal.

Q4 earnings on January 23 delivered EPS of $0.27 versus $0.23 expected, with revenue topping estimates by 4.74%, boosting confidence in mobile networks recovery.
Valuation metrics shine: Forward P/E of 14.34 versus industry 29.76, P/B of 3.05 against 6.10 peer average, and P/CF of 22.19 below sector 49.46.
Stock up 8.1% year-to-date and 7.8% in the past month, outpacing the broader tech sector amid cost cuts lifting margins toward 15%-18% target.

Sentiment:

🐃Bullish

Institutional Investors Pile into HPE as AI Networking Push Signals Retail Edge Strength.

National Pension Service upped its HPE holding by 9.7% with 334k shares, now owning 0.29% of the company worth $93M, signaling strong long-term conviction.
Convergence Investment Partners surged its stake 188% by adding 126k shares to reach $4.75M, ranking HPE as its 17th largest position.
HPE unveiled AI-native CX 6000 switches and Nonstop upgrades at NRF, boosting retail connectivity and performance by 15% to power POS and IoT devices.

Sentiment:

🐃Bullish

Ericsson Surges to 52-Week High on Earnings Beat and Value Appeal.

Q4 earnings on January 23 delivered EPS of $0.27 versus $0.23 expected, with revenue topping estimates by 4.74%, boosting confidence in mobile networks recovery.
Valuation metrics shine: Forward P/E of 14.34 versus industry 29.76, P/B of 3.05 against 6.10 peer average, and P/CF of 22.19 below sector 49.46.
Stock up 8.1% year-to-date and 7.8% in the past month, outpacing the broader tech sector amid cost cuts lifting margins toward 15%-18% target.

Sentiment:

🐃Bullish

Institutional Investors Pile into HPE as AI Networking Push Signals Retail Edge Strength.

National Pension Service upped its HPE holding by 9.7% with 334k shares, now owning 0.29% of the company worth $93M, signaling strong long-term conviction.
Convergence Investment Partners surged its stake 188% by adding 126k shares to reach $4.75M, ranking HPE as its 17th largest position.
HPE unveiled AI-native CX 6000 switches and Nonstop upgrades at NRF, boosting retail connectivity and performance by 15% to power POS and IoT devices.

Sentiment:

🐃Bullish

Investment Analysis

Ericsson

ERIC

Pros

Ericsson is a global leader in telecommunications with a broad geographic presence including Europe, North America, Asia, and Latin America, supporting resilience and growth.
The company has strong revenue generation with over $23 billion in 2024 and a positive net income, reflecting profitability and operational efficiency.
Ericsson is well-positioned in the 5G and network virtualization markets, driving digital transformation with advanced hardware, software, and managed services.

Considerations

Ericsson faces significant competition in the telecom infrastructure market, requiring continuous innovation and investment to maintain market share.
The company operates in a highly cyclical and capital-intensive industry subject to regulatory risks and geopolitical tensions in key regions.
Despite recent profitability, Ericsson's EBIT margins have shown variability, indicating potential operational execution risks and cost pressures.

Hewlett Packard Enterprise

HPE

Pros

Hewlett Packard Enterprise has an enterprise value around $51 billion, indicating a large scale and significant market presence in IT infrastructure and services.
The company benefits from a focus on hybrid cloud, edge computing and services, which are growing segments in enterprise IT spending.
Strategic partnerships like the joint validation lab with Ericsson for multi-vendor 5G solutions signal HPE’s engagement in emerging technology platforms.

Considerations

HPE faces intense competition in IT hardware and cloud services, pressuring margins and requiring ongoing innovation and differentiation.
The company's exposure to cyclical IT spending and macroeconomic uncertainty could affect revenue and profitability volatility.
HPE’s transition towards software and services business segments poses execution challenges while maintaining traditional hardware sales.

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