Motorola Solutions (NYSE: MSI) and Clearfield (NASDAQ:CLFD) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
This table compares Motorola Solutions and Clearfield’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Motorola Solutions and Clearfield, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Motorola Solutions currently has a consensus target price of $100.90, suggesting a potential downside of 0.16%. Clearfield has a consensus target price of $15.50, suggesting a potential upside of 25.00%. Given Clearfield’s stronger consensus rating and higher possible upside, analysts clearly believe Clearfield is more favorable than Motorola Solutions.
Motorola Solutions pays an annual dividend of $2.08 per share and has a dividend yield of 2.1%. Clearfield does not pay a dividend. Motorola Solutions pays out -194.4% of its earnings in the form of a dividend. Clearfield has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Motorola Solutions and Clearfield’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Motorola Solutions||$6.38 billion||2.57||-$155.00 million||($1.07)||-94.45|
|Clearfield||$73.95 million||2.32||$3.84 million||$0.29||42.76|
Clearfield has lower revenue, but higher earnings than Motorola Solutions. Motorola Solutions is trading at a lower price-to-earnings ratio than Clearfield, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.9% of Motorola Solutions shares are held by institutional investors. Comparatively, 29.0% of Clearfield shares are held by institutional investors. 2.5% of Motorola Solutions shares are held by insiders. Comparatively, 18.5% of Clearfield shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Motorola Solutions has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Clearfield has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Clearfield beats Motorola Solutions on 10 of the 17 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.
Clearfield, Inc. manufactures, markets and sells fiber management and enclosure platform that consolidates, distributes and protects fiber as it moves from the inside plant to the outside plant and all the way to the home, business and cell site. The Company’s products include Clearview Cassette, which is the building block of its product platform; Connectivity and Optical Components; FieldSmart, which is a series of panels, cabinets, wall boxes and other enclosures that house the Clearview components; FieldShield, which is a fiber delivery method for broadband deployment; CraftSmart, which is a line of optical protection field enclosures, and Cable Assemblies. Its products are sold across broadband service providers, including traditional telephone companies, competitive local exchange carriers, multiple service operators (cable television), wireless service providers, and municipal-owned utilities that utilize fiber in their service offerings to businesses and consumers.
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