Cisco Systems, Inc. (CSCO) vs Motorola Solutions, Inc. (MSI)

Cisco Systems, Inc. and Motorola Solutions, Inc. are both Communication Equipment companies. Cisco Systems, Inc. is the larger, with a market value of $422.0B against $75.3B — 5.6× the size. Cisco Systems, Inc. trades at the lower P/E: 31.8× against 35.5×. Cisco Systems, Inc. grew revenue faster over the last twelve months: 11.8% against 10.3%. Cisco Systems, Inc. has the higher net margin (21.0% vs 17.4%) and the higher return on invested capital (17.9% vs 17.3%). Both pay a dividend; Cisco Systems, Inc. yields more (3.15% vs 1.07%). Across the 23 metrics below, Motorola Solutions, Inc. leads on 12 and Cisco Systems, Inc. on 11.

Valuation

Metric CSCO MSI Communication Equipment median
P/E 31.84 35.53 33.61
P/S 6.66 6.18 2.16
P/B 8.39 28.14 2.40
Price to free cash flow 33.03 28.25 25.02
EV/EBITDA 23.74 23.34 13.78
EV/Sales 6.71 6.86 2.27
Earnings yield 3.14% 2.81% (0.65%)
Free cash flow yield 3.03% 3.54% 1.61%

Profitability

Metric CSCO MSI Communication Equipment median
Gross margin 64.52% 51.99% 39.47%
Operating margin 24.27% 24.91% 2.39%
Net margin 20.95% 17.44% (0.74%)
Free cash flow margin 20.16% 21.89% 1.39%
Return on equity 27.32% 91.35% (1.91%)
Return on assets 10.53% 11.97% (0.20%)
Return on invested capital 17.87% 17.30% 0.72%

Growth

Metric CSCO MSI Communication Equipment median
Revenue growth (TTM) 11.77% 10.30% 11.48%
EPS growth (last fiscal year) 27.59% 38.14% —
Revenue growth, 5-year CAGR 4.92% 9.52% 4.92%
Net income growth, 5-year CAGR 4.61% 17.81% 0.00%

Health

Metric CSCO MSI Communication Equipment median
Debt to equity 0.39 3.36 0.06
Current ratio 0.93 1.10 2.01
Net debt to EBITDA 0.19 2.34 0.67

Dividend

Metric CSCO MSI Communication Equipment median
Dividend yield 3.15% 1.07% 2.63%
Payout ratio 0.50 0.39 0.00

Size

Metric CSCO MSI Communication Equipment median
Market cap 422.01b 75.30b 563.45m

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