Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, radio and communication device specialist Harris (NYSE: HRS) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Harris' business and see what CAPS investors are saying about the stock right now.

Harris facts

Headquarters (founded)

Melbourne, Fla. (1895)

Market Cap

$5.7 billion


Communications equipment

Trailing-12-Month Revenue

$5.21 billion


CEO Howard Lance (since 2003)

CFO Gary McArthur (since 2006)

Return on Equity (average, past 3 years)



$459.9 million / $1.2 billion

Dividend Yield



Boeing (NYSE: BA)

General Dynamics (NYSE: GD)

Lockheed Martin (NYSE: LMT)
Northrop Grumman (NYSE: NOC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 507 members who have rated Harris believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Rich Smith (TMFDitty) and mrindependent, both of whom are ranked in the top 2% of our community.

Earlier this year , Rich highlighted Harris' attractive valuation, which is even lower today: "Moderate debt load, a respectable dividend, strong mid-teens growth prospects, and simply insane free cash flow. My thumbnail valuation tells me Harris is trading roughly 40% below where it should be trading."

In fact, Harris trades at a price-to-cash flow (7.4) in line with defense foe Lockheed Martin's (7.1) and at a discount to Boeing (11), Northrop (12), and General Dynamics (8.9). But thanks in large part to its enviable position in the government communications space, Harris' operating margins consistently top each of those very same rivals. Throw in a tasty dividend, and it's easy to see how Harris is managing to show up on several Fools' stock screens.

CAPS All-Star mrindependent is one of them:

The idea of the screen is to look for stocks that meet the following criteria: (1) dividend yields above 2% (2) stock seems undervalued and (3) dividend appears to be sustainable or growing. I think that Mr. Market will reward this type of stock in the near future as investors flee bonds in search of higher yields. Stable stocks should look appealing given the uncertain economic future for developed economies. The current dividend yield of Harris Corp is about 2.2%. Current ROE is 28% and the stock is trading for just 10 times expected earnings. The current payout ratio is 0.2 and the five year average payout ratio is 0.2.

What do you think about Harris, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. General Dynamics is a Motley Fool Inside Value pick. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.