Motorola Solutions

Methodology

Motorola Solutions' mission-critical communications equipment for public safety creates highly predictable recurring revenue from long-term government contracts and equipment upgrades. Video security and command center software add growth visibility. The calculation works well for this government-focused provider with clear contract visibility and replacement cycles.

Methodology

Motorola Solutions typically commands premium PEG ratios reflecting sticky government customer relationships, recurring software revenue, and mission-critical product positioning. While growth appears modest, the defensive characteristics and high switching costs justify valuations above industrial peers. Compare to historical ranges and government technology contractors rather than commercial equipment manufacturers.

Methodology

Motorola Solutions offers a modest but growing dividend with management emphasizing aggressive share buybacks as the primary capital return mechanism. Buyback activity significantly supplements the moderate dividend yield. For this cash-generative government contractor, total capital returns through dividends and repurchases matter more than yield alone.