Axon's Biggest Rival Might Be the Better Value

Axon gets the headlines with 35% growth, but its biggest competitor, Motorola Solutions (MSI), is 3x larger and highly profitable, and it's quietly racing Axon into drones and physical AI. Here's what the valuations say about both stocks right now. Public safety is one of the most underrated corners of the physical AI and edge AI investment thesis. In this video, we compare Motorola Solutions (MSI) and Axon Enterprise (AXON) head-to-head. We look at revenue growth, operating margin, free cash flow, and how each company is positioning in drone-as-first-responder technology: Axon with Skydio and Dedrone, and Motorola with Brinc and its latest drone acquisition. We break down Motorola's latest earnings, covering mission critical networks, video security, command center software, buybacks, and dividends. Then we run a reverse DCF on both stocks to see what growth the market is pricing in. Motorola needs roughly 12.5% annual per-share profit growth to justify today's price. Axon, using a normalized "pretend profitability" earnings estimate, needs about 30%. We also touch on the Flock license plate reader backlash, drone defense startups like Ondas and Red Cat, and other names in our public safety industry stock list. If you're weighing a mature compounder against a secular growth leader, this one's for you. If you want the reasoning behind more names like this one, Semiconductor Insider covers the process in more depth. Get access to all our research, weekly live Q&A events, and a growing set of tools to build your process: https://www.chipstockinvestor.com 📰 Why Chip Stock Investor Is Becoming a Software Business: https://chipstockinvestor.com/why-chip-stock-investor-is-becoming-a-software-business/ Linktree for all our socials: https://linktr.ee/chipstockinvestor If you found this video useful, please make sure to like and subscribe! 0:00 - Axon's Biggest Rival: Why Motorola Matters Now 0:40 - Flock Backlash & the Real-World Risk of Physical AI 2:00 - Where Publi