Motorola Solutions (NYSE: MSI) and Riverbed Technology (NASDAQ:RVBD) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitabiliy, analyst recommendations and valuation.

Dividends

Motorola Solutions pays an annual dividend of $1.88 per share and has a dividend yield of 2.2%. Riverbed Technology does not pay a dividend. Motorola Solutions pays out 51.9% of its earnings in the form of a dividend. Riverbed Technology has raised its dividend for 6 consecutive years.

Profitability

This table compares Motorola Solutions and Riverbed Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Motorola Solutions 10.10% -102.32% 10.07%
Riverbed Technology 17.55% 24.83% 10.64%

Valuation & Earnings

This table compares Motorola Solutions and Riverbed Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Motorola Solutions $6.13 billion 2.26 $1.59 billion $3.62 23.44
Riverbed Technology N/A N/A N/A N/A N/A

Motorola Solutions has higher revenue and earnings than Riverbed Technology.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Motorola Solutions and Riverbed Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Motorola Solutions 0 4 8 0 2.67
Riverbed Technology 0 0 0 0 N/A

Motorola Solutions currently has a consensus target price of $90.00, indicating a potential upside of 6.04%. Given Motorola Solutions’ higher possible upside, analysts clearly believe Motorola Solutions is more favorable than Riverbed Technology.

Institutional and Insider Ownership

87.7% of Motorola Solutions shares are owned by institutional investors. 2.5% of Motorola Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Motorola Solutions beats Riverbed Technology on 6 of the 11 factors compared between the two stocks.

Motorola Solutions Company Profile

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.

Riverbed Technology Company Profile

Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.

Receive News & Ratings for Motorola Solutions Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Motorola Solutions Inc. and related companies with MarketBeat.com's FREE daily email newsletter.