Motorola Solutions (NYSE:MSI) and Ubiquiti (NYSE:UI) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for Motorola Solutions and Ubiquiti, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Motorola Solutions and Ubiquiti’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Motorola Solutions has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Valuation and Earnings
This table compares Motorola Solutions and Ubiquiti’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Motorola Solutions||$7.34 billion||3.81||$966.00 million||$6.83||24.72|
|Ubiquiti||$1.16 billion||6.94||$322.69 million||$4.74||24.77|
Motorola Solutions has higher revenue and earnings than Ubiquiti. Motorola Solutions is trading at a lower price-to-earnings ratio than Ubiquiti, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.2% of Motorola Solutions shares are owned by institutional investors. Comparatively, 19.2% of Ubiquiti shares are owned by institutional investors. 3.0% of Motorola Solutions shares are owned by company insiders. Comparatively, 78.7% of Ubiquiti shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Motorola Solutions pays an annual dividend of $2.28 per share and has a dividend yield of 1.4%. Ubiquiti pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Motorola Solutions pays out 33.4% of its earnings in the form of a dividend. Ubiquiti pays out 25.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Motorola Solutions has raised its dividend for 8 consecutive years. Motorola Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Motorola Solutions Company Profile
Motorola Solutions, Inc. provides mission-critical communication solutions the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Services and Software. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video solutions, as well as the implementation, optimization, and integration of networks, devices, software, and applications for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. Its products include two-way portable and vehicle-mounted radios, accessories, software features, and upgrades; video cameras; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Services segment provides repair, technical support, and hardware maintenance services. This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software suite, unified communications applications, and video software solutions. It serves for government, public safety, and commercial communication networks. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.
Ubiquiti Company Profile
Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers worldwide. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as offers consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX platform, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON platform to build high speed fiber Internet networks. In addition, it offers UniFi Enterprise WLAN; UniFi Video, a video surveillance system; UniFi Switch that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, Ubiquiti Inc. offers embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors and online retailers worldwide. 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.
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