Which Is a Better Investment, Telefonaktiebolaget LM Ericsson or Garmin Ltd. Stock?

By Jenna Brashear
September 02, 2026
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Sifting through countless of stocks in the Household Durables 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 Garmin Ltd. or Telefonaktiebolaget LM Ericsson (publ) 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 Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) compare based on key financial metrics to determine which better meets your investment needs.

About Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ)

Garmin Ltd. designs, develops, manufactures, markets, and distributes a diverse range of GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide. It offers running; cycling products; smartwatch devices; scales and monitors; and sports timing and performance analysis; Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, which enables third parties to create applications that run on Garmin devices. It also provides adventure watches; outdoor handhelds and satellite communicators; golf devices; consumer automotive; dog devices; InReach and Gramin response; and dive devices. In addition, it designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and portable GPS navigators and wearables, as well as service products to the aviation market. Further, it offers chartplotters and multi-function displays, cartography, fishfinders, sonar, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing, audio, digital switching, trolling motors, and lighting; and domain controllers and infotainment units, as well as software, map database, camera, wearable, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, OEM, and online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

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.

Latest Household Durables and Garmin Ltd., Telefonaktiebolaget LM Ericsson (publ) Stock News

As of September 1, 2026, Garmin Ltd. had a $53.1 billion market capitalization, compared to the Household Durables median of $1.3 million. Garmin Ltd.’s stock is up 35.9% in 2026, down 4.6% in the previous five trading days and up 13.79% in the past year.

Currently, Garmin Ltd.’s price-earnings ratio is 28.4. Garmin Ltd.’s trailing 12-month revenue is $7.7 billion with a 24.5% net profit margin. Year-over-year quarterly sales growth most recently was 11.4%. Analysts expect adjusted earnings to reach $10.105 per share for the current fiscal year. Garmin Ltd. currently has a 1.5% dividend yield.

As of September 1, 2026, Telefonaktiebolaget LM Ericsson (publ) had a $33.1 billion market cap, putting it in the 90th percentile of all stocks. Telefonaktiebolaget LM Ericsson (publ)’s stock is up 4% in 2026, down 0.2% in the previous five trading days and up 27.83% 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.

How We Compare Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) 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 Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ)’s stock grades to see how they measure up against one another.

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Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) Stock Value Grades

Company Ticker Value
Garmin Ltd. GRMN F
Telefonaktiebolaget LM Ericsson (publ) ERIC A

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.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Garmin Ltd. has a Value Score of 15, which is Ultra Expensive. Telefonaktiebolaget LM Ericsson (publ) has a Value Score of 90, which is Deep Value.

The Value Stock Winner: Telefonaktiebolaget LM Ericsson (publ)

As you can clearly see from the Value Grade breakdown above, Telefonaktiebolaget LM Ericsson (publ) is considered to have better value than Garmin Ltd.. For investors who focus solely on a company’s valuation, Telefonaktiebolaget LM Ericsson (publ) could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) Growth Grades

Company Ticker Growth
Garmin Ltd. GRMN A
Telefonaktiebolaget LM Ericsson (publ) ERIC 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.

Garmin Ltd. has a Growth Score of 82, which is Very Strong. Telefonaktiebolaget LM Ericsson (publ) has a Growth Score of 35, which is Weak.

The Growth Grade Winner: Garmin Ltd.

As you can clearly see from the Growth Grade breakdown above, Garmin Ltd. has a more attractive growth grade than Telefonaktiebolaget LM Ericsson (publ). For investors who focus solely on how a company is growing relative to other companies in the same industry, Garmin Ltd. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ)’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Garmin Ltd. GRMN B
Telefonaktiebolaget LM Ericsson (publ) ERIC C

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

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Garmin Ltd. has a Earnings Estimate Score of 73, which is Positive. Telefonaktiebolaget LM Ericsson (publ) has a Earnings Estimate Score of 48, which is Neutral.

The Earnings Estimate Revisions Grade Winner: Garmin Ltd.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Garmin Ltd. has a better Earnings Estimate Revisions Grade than Telefonaktiebolaget LM Ericsson (publ). For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Garmin Ltd. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) Grades

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

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Momentum grades help 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.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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 Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ) pass any of our 60+ stock screens that have outperformed the market since their creation.

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

Overall, Garmin Ltd. stock has a Value Score of 15, Growth Score of 82 and Estimate Revisions Score of 73.

Telefonaktiebolaget LM Ericsson (publ) stock has a Value Score of 90, Growth Score of 35 and Estimate Revisions Score of 48.

Comparing Garmin Ltd. and Telefonaktiebolaget LM Ericsson (publ)’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.

Learn More About A+ Investor

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.



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