Quick verdict: ERIC vs GRMN in 2026

Overall, the comparison between ERIC and GRMN in 2026 presents a nuanced picture, with each company demonstrating distinct strengths. While the scorecard shows a tie on comparable metrics, Garmin (GRMN) clearly emerges as the growth leader, boasting a strong positive revenue growth and superior profitability margins. Conversely, Ericsson (ERIC) takes the lead as the value play, offering significantly lower valuation multiples and a more favorable discounted cash flow (DCF) outlook, and it is the analyst favorite by percentage of buy ratings. Garmin, however, has more positive analyst price target upside. This is not investment advice.

ERIC vs GRMN: key metrics side by side

Full side-by-side comparison of ERIC and GRMN across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-04.

ERIC vs GRMN valuation comparison

When conducting an ERIC vs GRMN valuation comparison, Ericsson (ERIC) appears to be significantly more attractively valued based on traditional metrics as of 2026-05-04. ERIC trades at a P/E ratio of 14.45x, which is considerably lower than Garmin’s (GRMN) P/E ratio of 26.54x. This suggests that the market is willing to pay nearly twice as much for each dollar of Garmin’s earnings compared to Ericsson’s. Similarly, Ericsson’s price-to-book (P/B) ratio of 3.55x is also lower than Garmin’s 4.97x, indicating that ERIC’s assets are valued less expensively relative to its market capitalization.

Furthermore, the discounted cash flow (DCF) analysis reinforces ERIC’s value proposition. Ericsson’s current price of $11.6699 is only -6.3% above its DCF fair value of $10.93, implying a much smaller overvaluation compared to Garmin. Garmin, with a current price of $239.18, is trading at a substantial -30.9% premium to its DCF fair value of $165.24. This stark difference in DCF upside suggests that Ericsson offers a more compelling entry point for value-focused investors looking for potential long-term appreciation, whereas Garmin’s current price seems significantly stretched from a DCF perspective. The ERIC vs GRMN valuation clearly favors Ericsson for those prioritizing a lower entry multiple and a more favorable intrinsic value assessment.

ERIC vs GRMN growth comparison

In terms of growth, the ERIC vs GRMN comparison reveals a clear divergence in recent performance and momentum. Garmin (GRMN) has demonstrated robust top-line expansion, reporting a positive revenue growth of 15.1% year-over-year. This strong momentum underscores Garmin’s ability to capture market share and expand its offerings, particularly within its diverse segments ranging from fitness and outdoor to aviation and marine. Such consistent growth typically appeals to investors seeking dynamic companies with expanding market opportunities.

Conversely, Ericsson (ERIC) has faced significant headwinds, reflected in a revenue growth of -14.2% year-over-year. This contraction in revenue indicates challenges in its core markets, likely stemming from slower 5G network rollouts or increased competition. While Ericsson commands a much larger revenue base at $222.48B compared to Garmin’s $7.25B, Garmin’s positive growth trajectory signals stronger operational momentum and potentially better future prospects for revenue expansion. This difference in growth rates is a critical factor for investors evaluating the ERIC vs GRMN fundamentals and valuation, highlighting Garmin’s superior growth narrative in the current market climate.

ERIC vs GRMN profitability

Examining the profitability of ERIC vs GRMN reveals that Garmin (GRMN) generally maintains superior margins, indicating more efficient operations relative to its sales. Garmin boasts a net margin of 23.26% and an EBITDA margin of 30.28%, both significantly higher than Ericsson’s (ERIC) net margin of 10.9% and EBITDA margin of 20.39%. These higher margins suggest that Garmin is better at converting its revenue into actual profit and operating cash flow, which is a strong indicator of a healthy business model and pricing power.

However, when it comes to generating cash flow relative to its enterprise value, Ericsson presents a more attractive Free Cash Flow (FCF) yield. ERIC records an impressive FCF yield of 9.16%, significantly higher than Garmin’s 3.15%. This suggests that despite lower overall profitability margins, Ericsson is more efficient at turning its operations into actual cash that can be used for debt reduction, dividends, or share buybacks. Both companies have an ‘N/A%’ for Return on Equity (ROE), preventing a direct comparison on that specific metric. Therefore, while Garmin excels in margin efficiency, Ericsson demonstrates a stronger FCF yield, indicating it generates more cash relative to its market capitalization, an important consideration for investors looking at cash generation.

Analyst ratings: ERIC vs GRMN

The analyst ratings for ERIC vs GRMN provide a mixed but insightful perspective on market sentiment for both stocks. Ericsson (ERIC) is covered by a larger pool of analysts, with 40 tracking the stock, and a notable 37.5% of them issuing a ‘Buy’ rating. Despite this higher percentage of buy recommendations, the consensus price target for ERIC stands at $6.94, representing a substantial -40.5% downside from its current price of $11.6699. This significant negative upside suggests that while a good portion of analysts see potential, the overall market consensus, reflected in the target price, implies a bearish outlook on its short-to-medium term price trajectory, leading to a consensus of ‘Hold’.

In contrast, Garmin (GRMN) is covered by 28 analysts, with 21.5% recommending a ‘Buy’. Although the percentage of ‘Buy’ ratings is lower than Ericsson’s, the consensus price target for GRMN is $269, indicating a healthy +12.5% upside from its current price of $239.18. This positive price target, coupled with a ‘Hold’ consensus, suggests that analysts generally see more potential for upside appreciation in Garmin compared to Ericsson, despite the lower proportion of explicit ‘Buy’ ratings. For investors considering should I buy ERIC or GRMN stock 2026, the analyst targets indicate a more favorable near-term price outlook for GRMN.

Should I buy ERIC or GRMN stock in 2026?

Deciding whether should I buy ERIC or GRMN stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance. For growth-oriented investors, Garmin (GRMN) appears to be the more compelling option. Garmin’s strong positive revenue growth of 15.1% year-over-year, coupled with its significantly higher net margin of 23.26% and EBITDA margin of 30.28%, points to a business with robust operational performance and expanding market presence. While its valuation multiples are higher, its growth trajectory and profitability make it attractive for those prioritizing capital appreciation driven by business expansion.

For value investors, Ericsson (ERIC) presents a more intriguing opportunity. ERIC trades at a much lower P/E ratio of 14.45x and a P/B ratio of 3.55x compared to GRMN’s 26.54x and 4.97x, respectively. More critically, Ericsson’s discounted cash flow (DCF) analysis suggests a much smaller overvaluation at -6.3% from its fair value, compared to Garmin’s substantial -30.9% deviation. This indicates that ERIC is priced more favorably relative to its intrinsic value, potentially offering a greater margin of safety and a more attractive entry point for investors seeking undervalued assets with long-term recovery potential.

When considering income, both stocks offer modest dividend yields, but Ericsson (ERIC) has a slight edge with a dividend yield of 0.03% versus Garmin’s (GRMN) 0.02%. While neither stock is a prominent dividend play, ERIC’s slightly higher yield combined with its stronger free cash flow yield of 9.16% (compared to GRMN’s 3.15%) indicates a better capacity to generate and return cash to shareholders. Therefore, for investors prioritizing both value and a marginally better income stream, Ericsson might be preferred. Ultimately, the choice between ERIC vs GRMN stock comparison 2026 boils down to a trade-off between Garmin’s superior growth and profitability margins versus Ericsson’s more attractive valuation and cash flow generation. This is not investment advice; always conduct your own comprehensive research before making investment decisions.

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