Analyzing China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY) and Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)

China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY – Get Free Report) and Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for China Techfaith Wireless Communication Technology and Telefonaktiebolaget LM Ericsson (publ), as reported by MarketBeat.

Telefonaktiebolaget LM Ericsson (publ) has a consensus price target of $5.90, indicating a potential downside of 16.90%.

Risk and Volatility

China Techfaith Wireless Communication Technology has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Telefonaktiebolaget LM Ericsson (publ) has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

8.0% of Telefonaktiebolaget LM Ericsson (publ) shares are owned by institutional investors. 33.3% of China Techfaith Wireless Communication Technology shares are owned by 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.

Earnings and Valuation

This table compares China Techfaith Wireless Communication Technology and Telefonaktiebolaget LM Ericsson (publ)’s gross revenue, earnings per share and valuation.

China Techfaith Wireless Communication Technology has higher earnings, but lower revenue than Telefonaktiebolaget LM Ericsson (publ).

Profitability

This table compares China Techfaith Wireless Communication Technology and Telefonaktiebolaget LM Ericsson (publ)’s net margins, return on equity and return on assets.

Summary

Telefonaktiebolaget LM Ericsson (publ) beats China Techfaith Wireless Communication Technology on 5 of the 8 factors compared between the two stocks.

About China Techfaith Wireless Communication Technology

(Get Free Report)

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People’s Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.

About Telefonaktiebolaget LM Ericsson (publ)

(Get Free Report)

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.

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