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LITE vs. MSI: A Head-to-Head Stock Comparison

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Here’s a clear look at LITE and MSI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolLITEMSI
Company NameLumentum Holdings Inc.Motorola Solutions, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentCommunications Equipment
Market Capitalization11.45 billion USD75.45 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 23, 2015January 2, 1962
Security TypeCommon StockCommon 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.

LITE vs. MSI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolLITEMSI
5-Day Price Return0.76%-0.28%
13-Week Price Return76.61%6.60%
26-Week Price Return162.77%3.45%
52-Week Price Return152.02%0.76%
Month-to-Date Return0.68%-0.96%
Year-to-Date Return95.13%-2.02%
10-Day Avg. Volume3.24M0.77M
3-Month Avg. Volume2.92M0.93M
3-Month Volatility46.87%16.86%
Beta1.571.02

Profitability

Return on Equity (TTM)

LITE

2.74%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

LITE’s Return on Equity of 2.74% is in the lower quartile for the Communications Equipment industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

MSI

127.51%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

MSI’s Return on Equity of 127.51% 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.

LITE vs. MSI: A comparison of their Return on Equity (TTM) against the Communications Equipment industry benchmark.

Net Profit Margin (TTM)

LITE

1.57%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

Falling into the lower quartile for the Communications Equipment industry, LITE’s Net Profit Margin of 1.57% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MSI

19.08%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

A Net Profit Margin of 19.08% places MSI in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

LITE vs. MSI: A comparison of their Net Profit Margin (TTM) against the Communications Equipment industry benchmark.

Operating Profit Margin (TTM)

LITE

-10.95%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

LITE has a negative Operating Profit Margin of -10.95%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

MSI

25.23%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

An Operating Profit Margin of 25.23% 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.

LITE vs. MSI: A comparison of their Operating Profit Margin (TTM) against the Communications Equipment industry benchmark.

Profitability at a Glance

SymbolLITEMSI
Return on Equity (TTM)2.74%127.51%
Return on Assets (TTM)0.64%14.27%
Net Profit Margin (TTM)1.57%19.08%
Operating Profit Margin (TTM)-10.95%25.23%
Gross Profit Margin (TTM)27.96%51.34%

Financial Strength

Current Ratio (MRQ)

LITE

4.37

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

LITE’s Current Ratio of 4.37 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

MSI

1.73

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

MSI’s Current Ratio of 1.73 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

LITE vs. MSI: A comparison of their Current Ratio (MRQ) against the Communications Equipment industry benchmark.

Debt-to-Equity Ratio (MRQ)

LITE

2.27

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

With a Debt-to-Equity Ratio of 2.27, 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

3.93

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

With a Debt-to-Equity Ratio of 3.93, 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.

LITE vs. MSI: A comparison of their Debt-to-Equity Ratio (MRQ) against the Communications Equipment industry benchmark.

Interest Coverage Ratio (TTM)

LITE

4.46

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
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
7.59
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.

LITE vs. MSI: A comparison of their Interest Coverage Ratio (TTM) against the Communications Equipment industry benchmark.

Financial Strength at a Glance

SymbolLITEMSI
Current Ratio (MRQ)4.371.73
Quick Ratio (MRQ)2.871.54
Debt-to-Equity Ratio (MRQ)2.273.93
Interest Coverage Ratio (TTM)4.468.92

Growth

Revenue Growth

LITE vs. MSI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

LITE vs. MSI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

LITE

0.00%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
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

0.92%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

MSI’s Dividend Yield of 0.92% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

LITE vs. MSI: A comparison of their Dividend Yield (TTM) against the Communications Equipment industry benchmark.

Dividend Payout Ratio (TTM)

LITE

0.00%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
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

32.70%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

MSI’s Dividend Payout Ratio of 32.70% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LITE vs. MSI: A comparison of their Dividend Payout Ratio (TTM) against the Communications Equipment industry benchmark.

Dividend at a Glance

SymbolLITEMSI
Dividend Yield (TTM)0.00%0.92%
Dividend Payout Ratio (TTM)0.00%32.70%

Valuation

Price-to-Earnings Ratio (TTM)

LITE

433.60

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

At 433.60, 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

35.47

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

MSI’s P/E Ratio of 35.47 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.

LITE vs. MSI: A comparison of their Price-to-Earnings Ratio (TTM) against the Communications Equipment industry benchmark.

Price-to-Sales Ratio (TTM)

LITE

6.83

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

LITE’s P/S Ratio of 6.83 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

6.77

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

MSI’s P/S Ratio of 6.77 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.

LITE vs. MSI: A comparison of their Price-to-Sales Ratio (TTM) against the Communications Equipment industry benchmark.

Price-to-Book Ratio (MRQ)

LITE

5.81

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

LITE’s P/B Ratio of 5.81 is in the upper tier for the Communications Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MSI

35.66

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

At 35.66, 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.

LITE vs. MSI: A comparison of their Price-to-Book Ratio (MRQ) against the Communications Equipment industry benchmark.

Valuation at a Glance

SymbolLITEMSI
Price-to-Earnings Ratio (TTM)433.6035.47
Price-to-Sales Ratio (TTM)6.836.77
Price-to-Book Ratio (MRQ)5.8135.66
Price-to-Free Cash Flow Ratio (TTM)1,111.8931.48