Motorola Solutions, Inc. (MSI) vs Ubiquiti Inc. (UI)

Motorola Solutions, Inc. and Ubiquiti Inc. are both Communication Equipment companies. Motorola Solutions, Inc. is the larger, with a market value of $85.6B against $31.1B — 2.8× the size. Ubiquiti Inc. trades at the lower P/E: 32.4× against 41.3×. Ubiquiti Inc. grew revenue faster over the last twelve months: 27.2% against 11.4%. Ubiquiti Inc. has the higher net margin (29.3% vs 16.5%) and the higher return on invested capital (89.4% vs 16.4%). Both pay a dividend; Motorola Solutions, Inc. yields more (0.93% vs 0.66%). Across the 23 metrics below, Ubiquiti Inc. leads on 15 and Motorola Solutions, Inc. on 8.

Valuation

Metric MSI UI Communication Equipment median
P/E 41.25 32.44 29.86
P/S 6.80 9.52 1.68
P/B 27.79 21.65 1.72
Price to free cash flow 33.73 34.30 21.71
EV/EBITDA 26.09 25.71 14.04
EV/Sales 7.53 9.47 1.76
Earnings yield 2.42% 3.08% (0.87%)
Free cash flow yield 2.96% 2.92% 0.68%

Profitability

Metric MSI UI Communication Equipment median
Gross margin 52.18% 46.16% 39.34%
Operating margin 24.24% 36.21% 2.43%
Net margin 16.54% 29.33% (0.64%)
Free cash flow margin 22.52% 27.76% 0.27%
Return on equity 76.76% 91.09% 0.00%
Return on assets 10.44% 52.41% (0.10%)
Return on invested capital 16.36% 89.37% 1.29%

Growth

Metric MSI UI Communication Equipment median
Revenue growth (TTM) 11.41% 27.22% 9.66%
EPS growth (last fiscal year) 38.14% 34.78% 31.29%
Revenue growth, 5-year CAGR 9.52% 11.52% 4.92%
Net income growth, 5-year CAGR 17.81% 9.27% 0.00%

Health

Metric MSI UI Communication Equipment median
Debt to equity 3.03 0.00 0.05
Current ratio 1.10 2.93 1.99
Net debt to EBITDA 2.34 (0.51) 0.93

Dividend

Metric MSI UI Communication Equipment median
Dividend yield 0.93% 0.66% 1.10%
Payout ratio 0.39 0.21 0.44

Size

Metric MSI UI Communication Equipment median
Market cap 85.56b 31.11b 495.24m

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