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

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

Company Profile

SymbolMSIMSTR
Company NameMotorola Solutions, Inc.Strategy Inc
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSoftware
Market Capitalization76.75 billion USD97.32 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1962June 11, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MSI and MSTR 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.

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

Historical Performance at a Glance

SymbolMSIMSTR
5-Day Price Return0.06%1.97%
13-Week Price Return9.24%-14.08%
26-Week Price Return4.92%7.70%
52-Week Price Return8.53%156.48%
Month-to-Date Return4.94%-14.60%
Year-to-Date Return-0.34%18.50%
10-Day Avg. Volume0.94M12.65M
3-Month Avg. Volume0.93M12.60M
3-Month Volatility14.56%53.52%
Beta0.993.93

Profitability

Return on Equity (TTM)

MSI

127.51%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

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.

MSTR

18.10%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

MSTR’s Return on Equity of 18.10% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSI vs. MSTR: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Software industry benchmarks.

Net Profit Margin (TTM)

MSI

19.08%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

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.

MSTR

1,036.61%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

MSTR’s Net Profit Margin of 1,036.61% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MSI vs. MSTR: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Operating Profit Margin (TTM)

MSI

25.23%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

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.

MSTR

1,435.93%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

MSTR’s Operating Profit Margin of 1,435.93% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MSI vs. MSTR: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Software industry benchmarks.

Profitability at a Glance

SymbolMSIMSTR
Return on Equity (TTM)127.51%18.10%
Return on Assets (TTM)14.27%13.42%
Net Profit Margin (TTM)19.08%1,036.61%
Operating Profit Margin (TTM)25.23%1,435.93%
Gross Profit Margin (TTM)51.34%70.10%

Financial Strength

Current Ratio (MRQ)

MSI

1.73

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

MSI’s Current Ratio of 1.73 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.

MSTR

0.68

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

MSTR’s Current Ratio of 0.68 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MSI vs. MSTR: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MSI

3.93

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
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.

MSTR

0.16

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

MSTR’s Debt-to-Equity Ratio of 0.16 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MSI vs. MSTR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Interest Coverage Ratio (TTM)

MSI

8.92

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

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.

MSTR

-30.23

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MSI vs. MSTR: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Financial Strength at a Glance

SymbolMSIMSTR
Current Ratio (MRQ)1.730.68
Quick Ratio (MRQ)1.540.55
Debt-to-Equity Ratio (MRQ)3.930.16
Interest Coverage Ratio (TTM)8.92-30.23

Growth

Revenue Growth

MSI vs. MSTR: 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

MSI vs. MSTR: 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)

MSI

0.90%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

MSI’s Dividend Yield of 0.90% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

MSTR

0.06%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.06%, MSTR offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.

MSI vs. MSTR: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

MSI

32.70%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
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.

MSTR

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

MSTR 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 vs. MSTR: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Dividend at a Glance

SymbolMSIMSTR
Dividend Yield (TTM)0.90%0.06%
Dividend Payout Ratio (TTM)32.70%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MSI

36.30

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

MSI’s P/E Ratio of 36.30 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.

MSTR

19.82

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

In the lower quartile for the Software industry, MSTR’s P/E Ratio of 19.82 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MSI vs. MSTR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

MSI

6.93

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

MSI’s P/S Ratio of 6.93 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.

MSTR

205.43

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 205.43, MSTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MSI vs. MSTR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

MSI

35.66

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

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.

MSTR

2.25

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

MSTR’s P/B Ratio of 2.25 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

MSI vs. MSTR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Valuation at a Glance

SymbolMSIMSTR
Price-to-Earnings Ratio (TTM)36.3019.82
Price-to-Sales Ratio (TTM)6.93205.43
Price-to-Book Ratio (MRQ)35.662.25
Price-to-Free Cash Flow Ratio (TTM)32.221,619.42