Ciena Corporation (CIEN) vs Motorola Solutions, Inc. (MSI)

Ciena Corporation and Motorola Solutions, Inc. are both Communication Equipment companies. Motorola Solutions, Inc. is the larger, with a market value of $75.3B against $51.7B — 1.5× the size. Motorola Solutions, Inc. trades at the lower P/E: 35.5× against 77.3×. Ciena Corporation grew revenue faster over the last twelve months: 32.6% against 10.3%. Motorola Solutions, Inc. has the higher net margin (17.4% vs 10.9%) and the higher return on invested capital (17.3% vs 12.6%). Across the 22 metrics below, Motorola Solutions, Inc. leads on 16 and Ciena Corporation on 6.

Valuation

Metric CIEN MSI Communication Equipment median
P/E 77.25 35.53 33.61
P/S 8.42 6.18 2.16
P/B 16.59 28.14 2.40
Price to free cash flow 62.26 28.25 25.02
EV/EBITDA 56.14 23.34 13.78
EV/Sales 8.52 6.86 2.27
Earnings yield 1.29% 2.81% (0.65%)
Free cash flow yield 1.61% 3.54% 1.61%

Profitability

Metric CIEN MSI Communication Equipment median
Gross margin 44.07% 51.99% 39.47%
Operating margin 12.27% 24.91% 2.39%
Net margin 10.87% 17.44% (0.74%)
Free cash flow margin 13.53% 21.89% 1.39%
Return on equity 22.40% 91.35% (1.91%)
Return on assets 9.52% 11.97% (0.20%)
Return on invested capital 12.63% 17.30% 0.72%

Growth

Metric CIEN MSI Communication Equipment median
Revenue growth (TTM) 32.57% 10.30% 11.48%
EPS growth (last fiscal year) 46.55% 38.14% —
Revenue growth, 5-year CAGR 6.19% 9.52% 4.92%
Net income growth, 5-year CAGR (19.34%) 17.81% 0.00%

Health

Metric CIEN MSI Communication Equipment median
Debt to equity 1.06 3.36 0.06
Current ratio 3.80 1.10 2.01
Net debt to EBITDA 0.67 2.34 0.67

Dividend

Metric CIEN MSI Communication Equipment median
Dividend yield — 1.07% 2.63%
Payout ratio 0.00 0.39 0.00

Size

Metric CIEN MSI Communication Equipment median
Market cap 51.73b 75.30b 563.45m

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