Financial Analysis: CalAmp (CAMP) versus Motorola Solutions (MSI)

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CalAmp (NYSE: MSI) and Motorola Solutions (NYSE:MSI) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Dividends

Motorola Solutions pays an annual dividend of $2.08 per share and has a dividend yield of 1.6%. CalAmp does not pay a dividend. Motorola Solutions pays out 40.0% of its earnings in the form of a dividend. Motorola Solutions has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of current recommendations for CalAmp and Motorola Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CalAmp 0 3 5 0 2.63
Motorola Solutions 1 1 11 0 2.77

CalAmp presently has a consensus price target of $26.71, suggesting a potential upside of 16.71%. Motorola Solutions has a consensus price target of $129.67, suggesting a potential upside of 1.76%. Given CalAmp’s higher possible upside, analysts clearly believe CalAmp is more favorable than Motorola Solutions.

Institutional and Insider Ownership

77.2% of CalAmp shares are owned by institutional investors. Comparatively, 86.2% of Motorola Solutions shares are owned by institutional investors. 5.4% of CalAmp shares are owned by insiders. Comparatively, 2.2% of Motorola Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

CalAmp has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares CalAmp and Motorola Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CalAmp 7.45% 17.26% 7.21%
Motorola Solutions -0.97% -70.84% 11.36%

Earnings and Valuation

This table compares CalAmp and Motorola Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CalAmp $365.91 million 2.21 $16.61 million $0.92 24.88
Motorola Solutions $6.38 billion 3.24 -$155.00 million $5.20 24.50

CalAmp has higher earnings, but lower revenue than Motorola Solutions. Motorola Solutions is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.

Summary

Motorola Solutions beats CalAmp on 9 of the 17 factors compared between the two stocks.

About CalAmp

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

About Motorola Solutions

Motorola Solutions, Inc., together with its subsidiaries, provides mission-critical communication infrastructure, devices, accessories, software, and services in the United States, the United Kingdom, and internationally. The company operates in two segments, Products and Services. The Products segment offers a portfolio of infrastructure, devices, accessories, and software for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. Its products include two-way portable radios and vehicle-mounted radios; accessories, such as speaker microphones, batteries, earpieces, headsets, carry cases, and cables; software features and upgrades; and radio network core and central processing software, base stations, consoles, repeaters, and software applications and features. The Services segment provides integration services, including implementation, optimization, and integration of networks, devices, software, and applications; and managed and support services comprising repair, technical support, and hardware maintenance services. This segment also offers network monitoring, software maintenance, and cyber security services; and services and Software as a Service offerings across radio network technologies, command center consoles, and smart public safety solutions. In addition, it provides Integrated Digital Enhanced Network (iDEN) services, including hardware and software maintenance services for its legacy iDEN customers. This segment offers its services for government, public safety, and commercial communication networks. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

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