MSI vs. QCOM, CSCO, PANW, JNPR, FFIV, CIEN, SATS, IDCC, CALX, and VSAT
Should you be buying Motorola Solutions stock or one of its competitors? The main competitors of Motorola Solutions include QUALCOMM (QCOM), Cisco Systems (CSCO), Palo Alto Networks (PANW), Juniper Networks (JNPR), F5 (FFIV), Ciena (CIEN), EchoStar (SATS), InterDigital (IDCC), Calix (CALX), and Viasat (VSAT). These companies are all part of the "communications equipment" industry.
Motorola Solutions (NYSE:MSI) and QUALCOMM (NASDAQ:QCOM) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations, institutional ownership, community ranking and media sentiment.
Motorola Solutions currently has a consensus price target of $358.86, indicating a potential downside of 3.29%. QUALCOMM has a consensus price target of $188.74, indicating a potential downside of 8.65%. Given Motorola Solutions' stronger consensus rating and higher probable upside, equities analysts plainly believe Motorola Solutions is more favorable than QUALCOMM.
Motorola Solutions pays an annual dividend of $3.92 per share and has a dividend yield of 1.1%. QUALCOMM pays an annual dividend of $3.40 per share and has a dividend yield of 1.6%. Motorola Solutions pays out 48.5% of its earnings in the form of a dividend. QUALCOMM pays out 45.7% 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. QUALCOMM is clearly the better dividend stock, given its higher yield and lower payout ratio.
84.2% of Motorola Solutions shares are owned by institutional investors. Comparatively, 74.4% of QUALCOMM shares are owned by institutional investors. 1.5% of Motorola Solutions shares are owned by insiders. Comparatively, 0.1% of QUALCOMM shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
QUALCOMM received 1457 more outperform votes than Motorola Solutions when rated by MarketBeat users. Likewise, 77.77% of users gave QUALCOMM an outperform vote while only 67.41% of users gave Motorola Solutions an outperform vote.
In the previous week, QUALCOMM had 19 more articles in the media than Motorola Solutions. MarketBeat recorded 30 mentions for QUALCOMM and 11 mentions for Motorola Solutions. Motorola Solutions' average media sentiment score of 1.31 beat QUALCOMM's score of 0.81 indicating that Motorola Solutions is being referred to more favorably in the media.
QUALCOMM has a net margin of 23.03% compared to Motorola Solutions' net margin of 13.64%. Motorola Solutions' return on equity of 398.16% beat QUALCOMM's return on equity.
Motorola Solutions has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, QUALCOMM has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.
QUALCOMM has higher revenue and earnings than Motorola Solutions. QUALCOMM is trading at a lower price-to-earnings ratio than Motorola Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
QUALCOMM beats Motorola Solutions on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MSI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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