Hewlett Packard Enterprise Company (HPE) vs Motorola Solutions, Inc. (MSI)

Hewlett Packard Enterprise Company and Motorola Solutions, Inc. are both Communication Equipment companies. Hewlett Packard Enterprise Company is the larger, with a market value of $86.2B against $75.3B — 1.1× the size. Hewlett Packard Enterprise Company trades at the lower P/E: 31.3× against 35.5×. Hewlett Packard Enterprise Company grew revenue faster over the last twelve months: 26.6% against 10.3%. Motorola Solutions, Inc. has the higher net margin (17.4% vs 6.39%) and the higher return on invested capital (17.3% vs 4.31%). Both pay a dividend; Hewlett Packard Enterprise Company yields more (3.34% vs 1.07%). Across the 23 metrics below, Hewlett Packard Enterprise Company leads on 12 and Motorola Solutions, Inc. on 11.

Valuation

Metric HPE MSI Communication Equipment median
P/E 31.31 35.53 33.61
P/S 2.01 6.18 2.16
P/B 3.16 28.14 2.40
Price to free cash flow 18.40 28.25 25.02
EV/EBITDA 12.34 23.34 13.78
EV/Sales 2.27 6.86 2.27
Earnings yield 3.19% 2.81% (0.65%)
Free cash flow yield 5.43% 3.54% 1.61%

Profitability

Metric HPE MSI Communication Equipment median
Gross margin 36.73% 51.99% 39.47%
Operating margin 6.21% 24.91% 2.39%
Net margin 6.39% 17.44% (0.74%)
Free cash flow margin 10.91% 21.89% 1.39%
Return on equity 10.48% 91.35% (1.91%)
Return on assets 3.32% 11.97% (0.20%)
Return on invested capital 4.31% 17.30% 0.72%

Growth

Metric HPE MSI Communication Equipment median
Revenue growth (TTM) 26.59% 10.30% 11.48%
EPS growth (last fiscal year) (102.07%) 38.14% —
Revenue growth, 5-year CAGR 4.91% 9.52% 4.92%
Net income growth, 5-year CAGR 0.00% 17.81% 0.00%

Health

Metric HPE MSI Communication Equipment median
Debt to equity 0.65 3.36 0.06
Current ratio 1.11 1.10 2.01
Net debt to EBITDA 3.06 2.34 0.67

Dividend

Metric HPE MSI Communication Equipment median
Dividend yield 3.34% 1.07% 2.63%
Payout ratio 0.58 0.39 0.00

Size

Metric HPE MSI Communication Equipment median
Market cap 86.15b 75.30b 563.45m

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