Motorola Solutions, Inc. (MSI) vs Nokia Corporation (NOK)

Motorola Solutions, Inc. and Nokia Corporation are both Communication Equipment companies. Motorola Solutions, Inc. is the larger, with a market value of $75.3B against $59.9B — 1.3× the size. Nokia Corporation trades at the lower P/E: 5.6× against 35.5×. Nokia Corporation grew revenue faster over the last twelve months: 13.9% against 10.3%. Motorola Solutions, Inc. has the higher net margin (17.4% vs 3.39%) and the higher return on invested capital (17.3% vs 2.83%). Both pay a dividend; Nokia Corporation yields more (3.91% vs 1.07%). Across the 23 metrics below, Motorola Solutions, Inc. leads on 13 and Nokia Corporation on 10.

Valuation

Metric MSI NOK Communication Equipment median
P/E 35.53 5.58 33.61
P/S 6.18 2.47 2.16
P/B 28.14 2.35 2.40
Price to free cash flow 28.25 94.34 25.02
EV/EBITDA 23.34 26.09 13.78
EV/Sales 6.86 2.33 2.27
Earnings yield 2.81% 17.92% (0.65%)
Free cash flow yield 3.54% 1.06% 1.61%

Profitability

Metric MSI NOK Communication Equipment median
Gross margin 51.99% 44.36% 39.47%
Operating margin 24.91% 4.14% 2.39%
Net margin 17.44% 3.39% (0.74%)
Free cash flow margin 21.89% 2.61% 1.39%
Return on equity 91.35% 3.38% (1.91%)
Return on assets 11.97% 1.90% (0.20%)
Return on invested capital 17.30% 2.83% 0.72%

Growth

Metric MSI NOK Communication Equipment median
Revenue growth (TTM) 10.30% 13.87% 11.48%
EPS growth (last fiscal year) 38.14% (48.00%) —
Revenue growth, 5-year CAGR 9.52% (2.05%) 4.92%
Net income growth, 5-year CAGR 17.81% 0.00% 0.00%

Health

Metric MSI NOK Communication Equipment median
Debt to equity 3.36 0.11 0.06
Current ratio 1.10 1.51 2.01
Net debt to EBITDA 2.34 (1.67) 0.67

Dividend

Metric MSI NOK Communication Equipment median
Dividend yield 1.07% 3.91% 2.63%
Payout ratio 0.39 0.12 0.00

Size

Metric MSI NOK Communication Equipment median
Market cap 75.30b 59.90b 563.45m

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