Motorola Solutions (NYSE: MSI) and Inseego (NASDAQ:INSG) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Insider & Institutional Ownership
87.8% of Motorola Solutions shares are owned by institutional investors. Comparatively, 12.1% of Inseego shares are owned by institutional investors. 2.5% of Motorola Solutions shares are owned by insiders. Comparatively, 4.1% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Motorola Solutions and Inseego’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Motorola Solutions||$6.04 billion||2.46||$560.00 million||$3.91||23.43|
|Inseego||$243.55 million||0.37||-$60.57 million||($1.22)||-1.26|
Motorola Solutions has higher revenue and earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than Motorola Solutions, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Motorola Solutions has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Inseego has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.
Motorola Solutions pays an annual dividend of $2.08 per share and has a dividend yield of 2.3%. Inseego does not pay a dividend. Motorola Solutions pays out 53.2% of its earnings in the form of a dividend. Motorola Solutions has raised its dividend for 6 consecutive years.
This table compares Motorola Solutions and Inseego’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Motorola Solutions and Inseego, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Motorola Solutions currently has a consensus target price of $94.36, suggesting a potential upside of 2.99%. Inseego has a consensus target price of $1.88, suggesting a potential upside of 21.75%. Given Inseego’s higher possible upside, analysts plainly believe Inseego is more favorable than Motorola Solutions.
Motorola Solutions beats Inseego on 12 of the 16 factors compared between the two stocks.
About Motorola Solutions
Motorola Solutions, Inc. is a provider of communication infrastructure, devices, accessories, software and services. The Company operates through two segments: Products and Services. The Company’s Products segment offers a portfolio of infrastructure, devices, accessories and software. The Products segment has two product lines: Devices and Systems. The primary customers of the Products segment are government, public safety and first-responder agencies, municipalities, and commercial and industrial customers operating private communications networks and manage a mobile workforce. The Company’s Services segment provides a range of service offerings for government, public safety and commercial communication networks. The Services segment product lines include Integration services, Managed & Support services, and Integrated Digital Enhanced Network (iDEN) services.
Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.
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