Analyzing Polycom (PLCM) and Motorola Solutions (MSI)
Polycom (NASDAQ: PLCM) and Motorola Solutions (NYSE:MSI) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitabiliy, analyst recommendations, institutional ownership and risk.
Institutional & Insider Ownership
92.4% of Polycom shares are held by institutional investors. Comparatively, 87.3% of Motorola Solutions shares are held by institutional investors. 0.7% of Polycom shares are held by insiders. Comparatively, 2.5% of Motorola Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Polycom has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.
Motorola Solutions pays an annual dividend of $1.88 per share and has a dividend yield of 2.1%. Polycom does not pay a dividend. Motorola Solutions pays out 49.6% of its earnings in the form of a dividend. Polycom has raised its dividend for 6 consecutive years.
This is a breakdown of current ratings for Polycom and Motorola Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Motorola Solutions has a consensus price target of $92.73, suggesting a potential upside of 3.95%. Given Motorola Solutions’ higher probable upside, analysts clearly believe Motorola Solutions is more favorable than Polycom.
Earnings and Valuation
This table compares Polycom and Motorola Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Motorola Solutions||$6.13 billion||2.37||$1.59 billion||$3.79||23.54|
Motorola Solutions has higher revenue and earnings than Polycom. Motorola Solutions is trading at a lower price-to-earnings ratio than Polycom, indicating that it is currently the more affordable of the two stocks.
This table compares Polycom and Motorola Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Motorola Solutions beats Polycom on 8 of the 13 factors compared between the two stocks.
Polycom, Inc. (Polycom) offers solutions for voice, video and content sharing and a line of support and service solutions. The Company operates in Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) geographic segments. The Company’s video, voice and content-management and content-sharing solutions include applications for mobile devices, browser-based video collaboration, cloud-delivered services, conference room systems and home/work office solutions and immersive telepresence. It offers various products and solutions, which include UC Group Systems, UC Platform and UC Personal Devices. UC Group Systems includes group video, group voice and immersive telepresence systems. UC Platform includes universal collaboration servers, virtualization management, resource management, recording and streaming, and remote access technologies that constitute the RealPresence Platform. UC Personal Devices includes group video, group voice and immersive telepresence systems.
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.
Receive News & Ratings for Polycom Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Polycom Inc and related companies with MarketBeat.com's FREE daily email newsletter.