Sonic Foundry (NASDAQ:SOFO) vs. Motorola Solutions (NYSE:MSI) Financial Analysis

Sonic Foundry (NASDAQ:SOFOGet Free Report) and Motorola Solutions (NYSE:MSIGet Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Sonic Foundry and Motorola Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonic Foundry $23.04 million 0.12 -$19.35 million ($1.62) -0.14
Motorola Solutions $9.11 billion 6.03 $1.36 billion $9.89 33.46

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

Analyst Ratings

This is a summary of recent ratings and price targets for Sonic Foundry and Motorola Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 1 0 0 2.00
Motorola Solutions 0 1 6 0 2.86

Motorola Solutions has a consensus target price of $328.29, suggesting a potential downside of 0.79%. Given Motorola Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Motorola Solutions is more favorable than Sonic Foundry.

Profitability

This table compares Sonic Foundry and Motorola Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonic Foundry -87.34% N/A -80.37%
Motorola Solutions 17.30% 668.00% 14.83%

Insider and Institutional Ownership

16.6% of Sonic Foundry shares are held by institutional investors. Comparatively, 82.4% of Motorola Solutions shares are held by institutional investors. 46.5% of Sonic Foundry shares are held by company insiders. Comparatively, 1.5% of Motorola Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sonic Foundry has a beta of -0.49, meaning that its share price is 149% less volatile than the S&P 500. Comparatively, Motorola Solutions has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Motorola Solutions beats Sonic Foundry on 13 of the 14 factors compared between the two stocks.

About Sonic Foundry

(Get Free Report)

Sonic Foundry, Inc. provides video capture, management, and streaming solutions in the United States, Europe, the Middle East, Asia, and internationally. The company offers Video Capture solutions, including Mediasite Recorder and Recorder Pro that are built-in room appliances used in schedule-based capture and advanced audio/video integration; Mediasite Mobile Recorders, a portable recording device used to capture and stream broadcast-quality video; Mediasite Mosaic & Mosaic Pro that allows instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices; and Mediasite Capture, a browser-based recording application that provides users a quick way to record their camera, microphone, and desktop. It also provides Video Management and Delivery solutions to manage, search, analyze, publish, and stream video content; Vidable, an AI powered solution that turns an organization's video libraries into dynamic knowledge base; Global Learning Exchange that provides students to access higher education in a flexible, cost effective, and locally supported environment; and Mediasite Cloud, a Software as a Service solution to host and manage customers' content. It markets its products to educational institutions, corporations, and government entities through reseller networks, direct sales, and partnerships with system integrators. Sonic Foundry, Inc. was founded in 1991 and is headquartered in Madison, Wisconsin.

About Motorola Solutions

(Get Free Report)

Motorola Solutions, Inc. provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications, and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services. 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.

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