Head-To-Head Survey: Motorola Solutions (NYSE:MSI) & NETGEAR (NASDAQ:NTGR)

Motorola Solutions (NYSE:MSI) and NETGEAR (NASDAQ:NTGR) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorola Solutions	17.44%	98.22%	12.87%
NETGEAR	-3.71%	-2.79%	-1.67%

Analyst Recommendations

This is a summary of recent ratings and target prices for Motorola Solutions and NETGEAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorola Solutions	0	2	10	1	2.92
NETGEAR	1	1	2	0	2.25

Motorola Solutions currently has a consensus price target of $519.44, indicating a potential upside of 6.79%. NETGEAR has a consensus price target of $36.50, indicating a potential upside of 73.07%. Given NETGEAR’s higher possible upside, analysts clearly believe NETGEAR is more favorable than Motorola Solutions.

Insider and Institutional Ownership

84.2% of Motorola Solutions shares are owned by institutional investors. Comparatively, 83.0% of NETGEAR shares are owned by institutional investors. 1.3% of Motorola Solutions shares are owned by company insiders. Comparatively, 3.1% of NETGEAR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorola Solutions	$11.68 billion	6.89	$2.15 billion	$12.70	38.30
NETGEAR	$699.62 million	0.82	-$17.92 million	($0.93)	-22.68

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

Volatility & Risk

Motorola Solutions has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, NETGEAR has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Summary

Motorola Solutions beats NETGEAR on 12 of the 15 factors compared between the two stocks.

About Motorola Solutions

Motorola Solutions, Inc. provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications, and video security and access control devices include two-way portable and vehicle-mounted radios, fixed video cameras, and accessories; communications network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services to government, public safety, and commercial communications networks. It serves hospitality; manufacturing; military and defence; public safety; mining; oil and gas; transportation and logistics; utilities industries. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.