Critical Analysis: Motorola Solutions (NYSE:MSI) vs. Sonim Technologies (NASDAQ:SONM)

Motorola Solutions (NYSE:MSI) and Sonim Technologies (NASDAQ:SONM) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorola Solutions	18.67%	160.93%	15.84%
Sonim Technologies	-52.00%	-465.12%	-70.96%

Earnings and Valuation

This table compares Motorola Solutions and Sonim Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorola Solutions	$10.82 billion	6.37	$1.58 billion	$11.98	34.48
Sonim Technologies	$58.24 million	0.19	-$33.65 million	($2.93)	-0.40

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Motorola Solutions and Sonim Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorola Solutions	0	1	8	0	2.89
Sonim Technologies	0	0	0	0	0.00

Motorola Solutions currently has a consensus target price of $513.25, suggesting a potential upside of 24.24%. Given Motorola Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Motorola Solutions is more favorable than Sonim Technologies.

Volatility and Risk

Motorola Solutions has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500.

Insider and Institutional Ownership

84.2% of Motorola Solutions shares are owned by institutional investors. Comparatively, 3.3% of Sonim Technologies shares are owned by institutional investors. 1.4% of Motorola Solutions shares are owned by insiders. Comparatively, 49.8% of Sonim Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Motorola Solutions beats Sonim Technologies on 12 of the 14 factors compared between the two stocks.

About Motorola Solutions

Motorola Solutions, Inc. provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications, and video security and access control devices include two-way portable and vehicle-mounted radios, fixed video cameras, and accessories; communications network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services to government, public safety, and commercial communications networks. It serves hospitality; manufacturing; military and defence; public safety; mining; oil and gas; transportation and logistics; utilities industries. 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.

About Sonim Technologies

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP10, Sonim XP5plus, Sonim XP3plus, and Sonim XP Pro; Sonim mobile hotspot; industrial-grade accessories. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells wireless carrier channels through distribution channels in North America and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, mining, and public safety sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is headquartered in San Diego, California.