Seek Returns logo

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

Updated on

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

Company Profile

SymbolMSIPSTG
Company NameMotorola Solutions, Inc.Pure Storage, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentTechnology Hardware, Storage & Peripherals
Market Capitalization76.99 billion USD18.15 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962October 6, 2015
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MSI and PSTG 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. PSTG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMSIPSTG
5-Day Price Return0.11%-4.01%
13-Week Price Return8.66%-1.32%
26-Week Price Return-0.84%-17.78%
52-Week Price Return9.40%-10.38%
Month-to-Date Return5.27%-6.70%
Year-to-Date Return-0.02%-9.60%
10-Day Avg. Volume1.18M1.91M
3-Month Avg. Volume0.93M2.47M
3-Month Volatility14.67%35.68%
Beta0.991.19

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.

PSTG

9.44%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

PSTG’s Return on Equity of 9.44% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSI vs. PSTG: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

3.93%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

PSTG’s Net Profit Margin of 3.93% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

MSI vs. PSTG: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

2.95%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

PSTG’s Operating Profit Margin of 2.95% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

MSI vs. PSTG: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolMSIPSTG
Return on Equity (TTM)127.51%9.44%
Return on Assets (TTM)14.27%3.32%
Net Profit Margin (TTM)19.08%3.93%
Operating Profit Margin (TTM)25.23%2.95%
Gross Profit Margin (TTM)51.34%69.26%

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.

PSTG

1.61

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

PSTG’s Current Ratio of 1.61 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

MSI vs. PSTG: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

0.08

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

Falling into the lower quartile for the Technology Hardware, Storage & Peripherals industry, PSTG’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

MSI vs. PSTG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

-2.95

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

PSTG has a negative Interest Coverage Ratio of -2.95. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MSI vs. PSTG: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolMSIPSTG
Current Ratio (MRQ)1.731.61
Quick Ratio (MRQ)1.541.40
Debt-to-Equity Ratio (MRQ)3.930.08
Interest Coverage Ratio (TTM)8.92-2.95

Growth

Revenue Growth

MSI vs. PSTG: 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. PSTG: 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

PSTG 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 vs. PSTG: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

PSTG 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. PSTG: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolMSIPSTG
Dividend Yield (TTM)0.90%0.00%
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.

PSTG

142.37

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

At 142.37, PSTG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Technology Hardware, Storage & Peripherals 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 vs. PSTG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

5.59

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

With a P/S Ratio of 5.59, PSTG trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MSI vs. PSTG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals 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.

PSTG

12.51

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

PSTG’s P/B Ratio of 12.51 is in the upper tier for the Technology Hardware, Storage & Peripherals 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 vs. PSTG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolMSIPSTG
Price-to-Earnings Ratio (TTM)36.30142.37
Price-to-Sales Ratio (TTM)6.935.59
Price-to-Book Ratio (MRQ)35.6612.51
Price-to-Free Cash Flow Ratio (TTM)32.2232.15