Head-To-Head Review: Extreme Networks (NASDAQ:EXTR) vs. Motorola Solutions (NYSE:MSI)

Motorola Solutions (NYSE:MSI) and Extreme Networks (NASDAQ:EXTR) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Motorola Solutions and Extreme Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorola Solutions	0	1	11	1	3.00
Extreme Networks	0	2	7	1	2.90

Motorola Solutions presently has a consensus price target of $545.70, suggesting a potential upside of 3.95%. Extreme Networks has a consensus price target of $33.86, suggesting a potential upside of 34.30%. Given Extreme Networks’ higher possible upside, analysts plainly believe Extreme Networks is more favorable than Motorola Solutions.

Institutional and Insider Ownership

84.2% of Motorola Solutions shares are owned by institutional investors. Comparatively, 91.0% of Extreme Networks shares are owned by institutional investors. 1.3% of Motorola Solutions shares are owned by insiders. Comparatively, 3.2% of Extreme Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Motorola Solutions and Extreme Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorola Solutions	16.54%	99.35%	13.22%
Extreme Networks	3.99%	102.41%	7.47%

Volatility & Risk

Motorola Solutions has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Extreme Networks has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Valuation and Earnings

This table compares Motorola Solutions and Extreme Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorola Solutions	$11.68 billion	7.44	$2.15 billion	$12.43	42.23
Extreme Networks	$1.28 billion	2.58	$42.12 million	$0.39	64.64

Motorola Solutions has higher revenue and earnings than Extreme Networks. Motorola Solutions is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.

Summary

Motorola Solutions beats Extreme Networks on 8 of the 14 factors compared between the two stocks.

About Motorola Solutions

Motorola Solutions, Inc. provides communications, software, video security and related services for public safety agencies and commercial and industrial organizations. Its products include two-way radios and land mobile radio systems, dispatch consoles, command center software, video surveillance systems and access control technology. The company’s offerings are designed to help customers coordinate communications, manage incidents and support security operations. Motorola Solutions also provides services such as system integration, maintenance and technical support.

About Extreme Networks

Extreme Networks, Inc. develops networking products and software for businesses and other organizations. Its offerings include wired and wireless network infrastructure, such as switches and Wi-Fi access points, along with cloud-based tools for managing, monitoring and securing networks. The company also provides network analytics, support and professional services. Its solutions are used across industries including education, healthcare, government, retail and hospitality. Founded in 1996, Extreme Networks has expanded through acquisitions, including Enterasys Networks and networking businesses from Brocade and Avaya.