Quick verdict: ERIC vs KEYS in 2026

In this 2026 stock comparison, Telefonaktiebolaget LM Ericsson (ERIC) and Keysight Technologies (KEYS) present a balanced scorecard, with each company securing 6 wins in key metrics, leading to an overall tie. Keysight Technologies takes the lead as the growth and margin champion, also garnering stronger analyst favor and displaying less negative price target upside. Conversely, Ericsson stands out for its significantly lower valuation multiples, superior free cash flow yield, and a minor dividend, making it the clear value leader. Not investment advice.

ERIC vs KEYS: key metrics side by side

Full side-by-side comparison of ERIC and KEYS across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-12.

ERIC vs KEYS valuation comparison

A critical aspect of any “eric vs keys stock comparison 2026” is the valuation, where Telefonaktiebolaget LM Ericsson (ERIC) presents a significantly more attractive profile than Keysight Technologies (KEYS). ERIC currently trades at a P/E ratio of 15.14x, which is substantially lower than KEYS’s elevated P/E of 63.55x. This vast difference suggests that ERIC’s earnings are valued much less expensively by the market compared to KEYS. Similarly, when looking at the price-to-book ratio, ERIC stands at 3.72x while KEYS is at 9.81x, reinforcing ERIC’s position as the more undervalued stock based on asset backing.

Further examining the “eric vs keys valuation” through discounted cash flow (DCF) analysis reveals more about their intrinsic values. ERIC’s DCF valuation of $10.79 implies a potential downside of -11.9% from its current price of $12.253. In contrast, Keysight Technologies’ DCF valuation of $96.1 suggests a much more significant downside of -72.9% from its current price of $353.97. This stark difference indicates that, even with a potential downside, ERIC is priced much closer to its estimated fair value compared to KEYS, which appears to be significantly overvalued by this metric. For investors prioritizing a lower entry multiple and less perceived overvaluation, ERIC clearly emerges as the cheaper option.

ERIC vs KEYS growth comparison

When considering the “eric vs keys stock comparison 2026” from a growth perspective, Keysight Technologies (KEYS) exhibits a stronger and more desirable trajectory. KEYS reported a robust revenue growth of +8.0% year-over-year, demonstrating healthy expansion in its market. This positive momentum is a key indicator for growth-oriented investors. On the other hand, Telefonaktiebolaget LM Ericsson (ERIC) faced a challenging period, showing a revenue growth of -14.2%, a significant contraction. This negative growth indicates headwinds or a period of restructuring for Ericsson, making KEYS the clear winner in terms of recent top-line expansion.

Beyond revenue growth, profitability margins offer additional insight into which company has stronger momentum. KEYS commands superior net and EBITDA margins, with a net margin of 16.88% and an EBITDA margin of 24.75%. In comparison, ERIC’s net margin stands at 10.9% and its EBITDA margin at 20.39%. These figures suggest that Keysight is more efficient at converting its revenue into profit, further highlighting its operational strength and stronger momentum. While specific forward estimates are not provided, the current growth rates and margin performance strongly position KEYS as the company with stronger momentum heading into 2026.

ERIC vs KEYS profitability

Examining “eric vs keys fundamentals and valuation” reveals distinct differences in profitability. Keysight Technologies (KEYS) demonstrates superior profitability margins compared to Telefonaktiebolaget LM Ericsson (ERIC). KEYS recorded a net margin of 16.88%, indicating that a larger percentage of its revenue translates directly into profit for shareholders. ERIC, while profitable, had a net margin of 10.9%. This difference underscores KEYS’s operational efficiency and pricing power within its respective markets. Furthermore, Keysight’s EBITDA margin of 24.75% also outpaces Ericsson’s 20.39%, suggesting better performance at the operating level before accounting for non-operating expenses.

Regarding return on equity (ROE), data for both ERIC and KEYS is noted as N/A%, preventing a direct comparison on this specific metric. However, when we look at free cash flow (FCF) yield, ERIC takes a decisive lead. Ericsson boasts an impressive FCF yield of 8.75%, significantly higher than Keysight’s 2.36%. This indicates that ERIC generates considerably more cash relative to its market capitalization, which can be crucial for debt repayment, reinvestment, or shareholder returns. Therefore, while KEYS is more efficient in its margins, ERIC generates more free cash flow, highlighting different facets of financial strength.

Analyst ratings: ERIC vs KEYS

A crucial part of any “eric vs keys stock comparison 2026” involves understanding how Wall Street analysts view these companies. Keysight Technologies (KEYS) enjoys significantly stronger analyst support and a more favorable consensus. Of the 15 analysts covering KEYS, a substantial 80.0% have a Buy rating on the stock, leading to an overall consensus of “Buy.” Their collective price target for KEYS is $289.25, suggesting a potential downside of -18.3% from its current price of $353.97. Despite the implied downside, the high percentage of Buy ratings indicates strong confidence in Keysight’s long-term prospects.

In contrast, Telefonaktiebolaget LM Ericsson (ERIC) receives a more cautious outlook from analysts. Out of 40 analysts covering ERIC, only 37.5% recommend a Buy, resulting in an overall “Hold” consensus. The analyst consensus target price for ERIC is $6.94, which represents a significant potential downside of -43.4% from its current price of $12.253. This stark difference in both the percentage of Buy ratings and the implied price target upside (or less negative downside for KEYS) clearly shows that analysts prefer KEYS over ERIC in the current market environment, reflecting greater optimism for Keysight’s future performance.

Should I buy ERIC or KEYS stock in 2026?

Deciding “should i buy eric or keys stock 2026” depends heavily on an investor’s individual strategy and risk tolerance. For growth-oriented investors, Keysight Technologies (KEYS) appears to be the more compelling choice. With a positive revenue growth rate of 8.0% and superior net and EBITDA margins (16.88% and 24.75% respectively), KEYS demonstrates stronger business momentum and operational efficiency. While its valuation multiples are high, its growth profile and strong analyst endorsement (80.0% Buy rating) suggest confidence in its ability to continue expanding and delivering future earnings.

For value investors, Telefonaktiebolaget LM Ericsson (ERIC) presents a more attractive proposition based on its current “eric vs keys fundamentals and valuation.” ERIC trades at a much lower P/E ratio of 15.14x and a P/B ratio of 3.72x, making it considerably cheaper than KEYS. Furthermore, its DCF analysis implies a less severe potential downside of -11.9% compared to KEYS’s -72.9%. ERIC also boasts a significantly higher free cash flow yield of 8.75%, indicating strong cash generation relative to its market cap, which could appeal to investors seeking overlooked value.

For investors prioritizing income, ERIC is the only option, albeit with a minimal dividend yield of 0.03%. Keysight Technologies currently offers no dividend (0% yield). While Ericsson’s dividend is negligible, it still technically provides some income. Overall, the decision to “should i buy eric or keys stock 2026” boils down to whether you prioritize growth and analyst sentiment (KEYS) or value and strong free cash flow generation (ERIC). This is not investment advice; always conduct thorough personal research.

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