NEW YORK ( TheStreet) - Motorola enacted a strategic split earlier this month. The two new companies include Motorola Mobility ( MMI) and Motorola Solutions ( MSI).

Motorola Mobility consists of mobile phones, digital TV boxes and broadband modems, while Motorola Solutions primarily features radio and other security devices for government and commercial clients. In light of the recent announcement, we are launching coverage on the two companies.

Our analysis contains historical gross margin estimates for both Motorola Mobility and Motorola Solutions. For example, we had previously estimated the gross margins for Motorola's mobile phone business as 29% for 2010; we now estimate it to be around 24% for 2010.

We have also updated indirect expenses like SG&A, R&D, Capex, etc. based on the new information. All in all, we have arrived at a $19.32 price estimate for Motorola Mobility stock, well below market price. Our price estimate for Motorola Solutions stands at $33.33, roughly 10% below market price.

If you liked this article you might like

7 Bargain-Basement Stocks That Could Rebound in 2017

2 Stocks Ready to Break Out Higher: Marcus & Millichap, CBRE Group

Commercial Real Estate Has Room to Rise, Says Marcus & Millichap CEO

Commercial Real Estate Solid Says Marcus & Millichap CEO

Insider Trading Alert - NVEE, SJI And MMI Traded By Insiders