Critical Comparison: Globalstar (NYSE:GSAT) versus Lithium (OTCMKTS:LTUM)

Globalstar (NYSE:GSATGet Rating) and Lithium (OTCMKTS:LTUMGet Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Globalstar and Lithium, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globalstar 0 0 0 0 N/A
Lithium 0 0 0 0 N/A

Profitability

This table compares Globalstar and Lithium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globalstar -83.04% -25.83% -11.84%
Lithium N/A -100.23% -91.53%

Institutional and Insider Ownership

17.8% of Globalstar shares are owned by institutional investors. 64.4% of Globalstar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Globalstar and Lithium’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globalstar $124.30 million 18.65 -$112.63 million ($0.06) -21.50
Lithium N/A N/A -$160,000.00 ($0.01) -29.06

Lithium has lower revenue, but higher earnings than Globalstar. Lithium is trading at a lower price-to-earnings ratio than Globalstar, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Globalstar has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Lithium has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Summary

Globalstar beats Lithium on 6 of the 10 factors compared between the two stocks.

About Globalstar (Get Rating)

Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM's capacity-multiplying technology with Globalstar's Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.

About Lithium (Get Rating)

Lithium Corporation, an exploration stage mining company, engages in the identification, acquisition, and exploration of metals and minerals in Nevada and British Columbia. It explores for lithium/boron/potassium, graphite, gold, and silver deposits. The company owns interests in the Fish Lake Valley property that includes 143 claims covering an area of approximately 11,360 acres located in northern Esmeralda County in west central Nevada; and San Emidio property comprising 10 claims, which cover an area of approximately 1,600 acres located in Washoe County in northwestern Nevada. It also holds interests in the BC Sugar Flake Graphite property covering an area 19,816 acres located in the Cherryville area of British Columbia; and Hughes claims located in the six discrete prospect areas of Nevada. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was incorporated in 2007 and is headquartered in Elko, Nevada.

Receive News & Ratings for Globalstar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Globalstar and related companies with MarketBeat.com's FREE daily email newsletter.