Sifting through countless of stocks in the Communications Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc.

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. 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.

Ubiquiti Inc. engages in the development of networking technology for service providers, enterprises, and consumers in North America, Europe, the Middle East, Africa, Asia Pacific, South America. The company develops technology platforms for high-capacity distributed Internet access and unified information technology. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products. It also provides technology platforms, such as UniFi Cloud Gateway, an Enterprise class internet and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; UniFi Protect, a video surveillance platform; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Access, a door access solution; UniFi Talk, a plug-and-play phone system and VoIP subscription service. In addition, the company offers airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; airFiber, a wireless backhauls point-to-point radio system; UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks; and Wave, a technology platform. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of distributors, online retailers, and direct to customers through webstores. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

Latest Communications Equipment and Telefonaktiebolaget LM Ericsson (publ), Ubiquiti Inc. Stock News

As of September 2, 2026, Telefonaktiebolaget LM Ericsson (publ) had a $33.0 billion market capitalization, compared to the Communications Equipment median of $370.8 million. Telefonaktiebolaget LM Ericsson (publ)’s stock is up 4.2% in 2026, down 0.2% in the previous five trading days and up 29.55% in the past year.

Currently, Telefonaktiebolaget LM Ericsson (publ)’s price-earnings ratio is 13.2. Telefonaktiebolaget LM Ericsson (publ)’s trailing 12-month revenue is $23.5 billion with a 10.8% net profit margin. Year-over-year quarterly sales growth most recently was -7.9%. Analysts expect adjusted earnings to reach $0.591 per share for the current fiscal year. Telefonaktiebolaget LM Ericsson (publ) currently has a 3.1% dividend yield.

As of September 2, 2026, Ubiquiti Inc. had a $36.2 billion market cap, putting it in the 91st percentile of all stocks. Ubiquiti Inc.’s stock is up 10.2% in 2026, up 2.8% in the previous five trading days and up 13.22% in the past year.

Currently, Ubiquiti Inc.’s price-earnings ratio is 37.8. Ubiquiti Inc.’s trailing 12-month revenue is $3.3 billion with a 29.3% net profit margin. Year-over-year quarterly sales growth most recently was 23.5%. Analysts expect adjusted earnings to reach $17.714 per share for the current fiscal year. Ubiquiti Inc. currently has a 0.7% dividend yield.

How We Compare Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc.’s stock grades to see how they measure up against one another.

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Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. Growth Grades

Company	Ticker	Growth
Telefonaktiebolaget LM Ericsson (publ)	ERIC	D
Ubiquiti Inc.	UI	D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Telefonaktiebolaget LM Ericsson (publ) has a Growth Score of 35, which is Weak. Ubiquiti Inc. has a Growth Score of 38, which is Weak.

The Growth Stock Winner: No Clear Winner

Neither Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. is the better investment when it comes to sustainable growth.

Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc.’s Quality Grades

Company	Ticker	Quality
Telefonaktiebolaget LM Ericsson (publ)	ERIC	A
Ubiquiti Inc.	UI	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Telefonaktiebolaget LM Ericsson (publ) has a Quality Score of 98, which is Very Strong. Ubiquiti Inc. has a Quality Score of 91, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc.’s Momentum Grades

Company	Ticker	Momentum
Telefonaktiebolaget LM Ericsson (publ)	ERIC	C
Ubiquiti Inc.	UI	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Telefonaktiebolaget LM Ericsson (publ) has a Momentum Score of 43, which is Average. Ubiquiti Inc. has a Momentum Score of 57, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. is the better investment when it comes to momentum.

Other Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. Grades

In addition to Quality, Momentum and Growth, A+ Investor also provides grades for Value and Estimate Revisions.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Telefonaktiebolaget LM Ericsson (publ) or Ubiquiti Inc. Stock?

Overall, Telefonaktiebolaget LM Ericsson (publ) stock has a Growth Score of 35, Momentum Score of 43 and Quality Score of 98.

Ubiquiti Inc. stock has a Growth Score of 38, Momentum Score of 57 and Quality Score of 91.

Comparing Telefonaktiebolaget LM Ericsson (publ) and Ubiquiti Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.