LITE vs. MSI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LITE and MSI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LITE | MSI |
|---|---|---|
| Company Name | Lumentum Holdings Inc. | Motorola Solutions, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Communications Equipment |
| Market Capitalization | 17.64 billion USD | 63.05 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 23, 2015 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of LITE and MSI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | LITE | MSI |
|---|---|---|
| 5-Day Price Return | -10.67% | -3.56% |
| 13-Week Price Return | 100.37% | -17.45% |
| 26-Week Price Return | 211.57% | -8.06% |
| 52-Week Price Return | 163.63% | -23.50% |
| Month-to-Date Return | 15.18% | -6.57% |
| Year-to-Date Return | 176.53% | -17.79% |
| 10-Day Avg. Volume | 6.07M | 1.59M |
| 3-Month Avg. Volume | 3.56M | 0.96M |
| 3-Month Volatility | 77.71% | 22.32% |
| Beta | 1.54 | 1.02 |
Profitability
Return on Equity (TTM)
LITE
12.27%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
LITE’s Return on Equity of 12.27% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSI
110.80%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
MSI’s Return on Equity of 110.80% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
LITE
6.11%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
LITE’s Net Profit Margin of 6.11% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
MSI
18.71%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
A Net Profit Margin of 18.71% places MSI in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
LITE
-4.94%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
LITE has a negative Operating Profit Margin of -4.94%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
MSI
25.25%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
An Operating Profit Margin of 25.25% places MSI in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | LITE | MSI |
|---|---|---|
| Return on Equity (TTM) | 12.27% | 110.80% |
| Return on Assets (TTM) | 2.68% | 13.18% |
| Net Profit Margin (TTM) | 6.11% | 18.71% |
| Operating Profit Margin (TTM) | -4.94% | 25.25% |
| Gross Profit Margin (TTM) | 30.59% | 51.41% |
Financial Strength
Current Ratio (MRQ)
LITE
1.37
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
LITE’s Current Ratio of 1.37 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
MSI
1.03
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
MSI’s Current Ratio of 1.03 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
LITE
4.15
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.15, LITE operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
MSI
4.01
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.01, MSI operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
LITE
4.46
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
LITE’s Interest Coverage Ratio of 4.46 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
MSI
8.92
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
MSI’s Interest Coverage Ratio of 8.92 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | LITE | MSI |
|---|---|---|
| Current Ratio (MRQ) | 1.37 | 1.03 |
| Quick Ratio (MRQ) | 0.94 | 0.86 |
| Debt-to-Equity Ratio (MRQ) | 4.15 | 4.01 |
| Interest Coverage Ratio (TTM) | 4.46 | 8.92 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
LITE
0.00%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
LITE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
MSI
1.12%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
MSI’s Dividend Yield of 1.12% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
LITE
0.00%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
LITE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
MSI
33.55%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
MSI’s Dividend Payout Ratio of 33.55% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | LITE | MSI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.12% |
| Dividend Payout Ratio (TTM) | 0.00% | 33.55% |
Valuation
Price-to-Earnings Ratio (TTM)
LITE
157.44
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
At 157.44, LITE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
MSI
29.91
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
MSI’s P/E Ratio of 29.91 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
LITE
9.62
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
LITE’s P/S Ratio of 9.62 is in the upper echelon for the Communications Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
MSI
5.59
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
MSI’s P/S Ratio of 5.59 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
LITE
14.77
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
At 14.77, LITE’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
MSI
32.52
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
At 32.52, MSI’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | LITE | MSI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 157.44 | 29.91 |
| Price-to-Sales Ratio (TTM) | 9.62 | 5.59 |
| Price-to-Book Ratio (MRQ) | 14.77 | 32.52 |
| Price-to-Free Cash Flow Ratio (TTM) | 1,753.62 | 26.22 |