Technical Communications (NASDAQ:TCCO) and Motorola Solutions (NYSE:MSI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
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2.2% of Technical Communications shares are held by institutional investors. Comparatively, 86.5% of Motorola Solutions shares are held by institutional investors. 25.7% of Technical Communications shares are held by company insiders. Comparatively, 2.2% of Motorola Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Motorola Solutions pays an annual dividend of $2.28 per share and has a dividend yield of 1.6%. Technical Communications does not pay a dividend. Motorola Solutions pays out 33.4% of its earnings in the form of a dividend. Motorola Solutions has raised its dividend for 8 consecutive years.
Volatility & Risk
Technical Communications has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
This table compares Technical Communications and Motorola Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Technical Communications and Motorola Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Motorola Solutions has a consensus price target of $129.96, indicating a potential downside of 7.60%. Given Motorola Solutions’ higher probable upside, analysts clearly believe Motorola Solutions is more favorable than Technical Communications.
Earnings and Valuation
This table compares Technical Communications and Motorola Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Technical Communications||$5.31 million||1.01||$100,000.00||N/A||N/A|
|Motorola Solutions||$7.34 billion||3.14||$966.00 million||$6.83||20.59|
Motorola Solutions has higher revenue and earnings than Technical Communications.
Motorola Solutions beats Technical Communications on 10 of the 15 factors compared between the two stocks.
About Technical Communications
Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide. The company primarily provides voice, data, and fax, and voice networks. Its products include government systems, such as DSD 72A-SP military bulk encryptor, CSD 3324 SE telephone/fax encryptor, and the DSP 9000 radio encryption system, as well as the HSE 6000 squad radio headset and telephone encryptor for public safety special operations land mobile radio applications and for military applications. The company also provides secure office systems, such as CSD 4100 executive secure telephone and CipherTalk 8500 Internet protocol (IP)-based secure wireless phone. In addition, it offers network security systems comprising network encryption systems with KEYNET centralized key and device management for IP, SONET/SDH, and frame relay networks to secure data in transit from local area network to local area network and across wide area networks. The company's products are used to protect confidentiality in communications between radios, telephones, mobile phones, facsimile machines, and data network equipment over wires, fiber optic cables, radio waves, and microwave and satellite links. It serves various markets, including foreign and domestic governmental agencies, law enforcement and military agencies, telecommunications carriers, financial institutions, and multinational companies requiring protection of mission-critical information. The company sells directly to customers, original equipment manufacturers, and value-added resellers using its in-house sales force, as well as domestic and international representatives, consultants, and distributors. Technical Communications Corporation was founded in 1961 and is headquartered in Concord, Massachusetts.
About Motorola Solutions
Motorola Solutions, Inc., together with its subsidiaries, provides mission-critical communication infrastructure, devices, accessories, software, and services in the United States, the United Kingdom, and internationally. The company operates in two segments, Products and Services. The Products segment offers a portfolio of infrastructure, devices, accessories, and software for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. Its products include two-way portable radios and vehicle-mounted radios; accessories, such as speaker microphones, batteries, earpieces, headsets, carry cases, and cables; software features and upgrades; and radio network core and central processing software, base stations, consoles, repeaters, and software applications and features. The Services segment provides integration services, including implementation, optimization, and integration of networks, devices, software, and applications; and managed and support services comprising repair, technical support, and hardware maintenance services. This segment also offers network monitoring, software maintenance, and cyber security services; and services and Software as a Service offerings across radio network technologies, command center consoles, and smart public safety solutions. In addition, it provides Integrated Digital Enhanced Network (iDEN) services, including hardware and software maintenance services for its legacy iDEN customers. This segment offers its services for government, public safety, and commercial communication networks. 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.