Analyzing Motorola Solutions (MSI) and Aerohive Networks (HIVE)

Motorola Solutions (NYSE: MSI) and Aerohive Networks (NYSE:HIVE) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Motorola Solutions and Aerohive Networks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Motorola Solutions $6.04 billion 2.52 $560.00 million $3.91 24.07
Aerohive Networks $169.82 million 1.70 -$36.91 million ($0.50) -10.80

Motorola Solutions has higher revenue and earnings than Aerohive Networks. Aerohive Networks is trading at a lower price-to-earnings ratio than Motorola Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Motorola Solutions and Aerohive Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Motorola Solutions 10.51% -92.09% 10.40%
Aerohive Networks -17.00% -103.45% -18.90%

Dividends

Motorola Solutions pays an annual dividend of $1.88 per share and has a dividend yield of 2.0%. Aerohive Networks does not pay a dividend. Motorola Solutions pays out 48.1% of its earnings in the form of a dividend. Motorola Solutions has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

87.8% of Motorola Solutions shares are held by institutional investors. Comparatively, 46.3% of Aerohive Networks shares are held by institutional investors. 2.5% of Motorola Solutions shares are held by insiders. Comparatively, 26.2% of Aerohive Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Motorola Solutions has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Aerohive Networks has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Motorola Solutions and Aerohive Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Motorola Solutions 0 3 9 0 2.75
Aerohive Networks 0 1 4 0 2.80

Motorola Solutions presently has a consensus price target of $94.36, suggesting a potential upside of 0.27%. Aerohive Networks has a consensus price target of $6.31, suggesting a potential upside of 16.85%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than Motorola Solutions.

Summary

Motorola Solutions beats Aerohive Networks on 11 of the 16 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.

Aerohive Networks Company Profile

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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