Critical Contrast: Globalstar (GSAT) and Its Competitors

Globalstar (NYSE:GSATGet Rating) is one of 41 publicly-traded companies in the “Communication services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Globalstar to related companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Institutional & Insider Ownership

17.8% of Globalstar shares are held by institutional investors. Comparatively, 53.2% of shares of all “Communication services, not elsewhere classified” companies are held by institutional investors. 64.4% of Globalstar shares are held by insiders. Comparatively, 20.7% of shares of all “Communication services, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Globalstar has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Globalstar’s peers have a beta of 1.50, indicating that their average stock price is 50% more volatile than the S&P 500.

Earnings & Valuation

This table compares Globalstar and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Globalstar $124.30 million -$112.63 million -21.50
Globalstar Competitors $3.40 billion $367.47 million 0.26

Globalstar’s peers have higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Globalstar and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globalstar -83.04% -25.83% -11.84%
Globalstar Competitors -91.61% -66.41% -11.75%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Globalstar and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globalstar 0 0 0 0 N/A
Globalstar Competitors 234 672 741 36 2.34

As a group, “Communication services, not elsewhere classified” companies have a potential upside of 54.23%. Given Globalstar’s peers higher possible upside, analysts clearly believe Globalstar has less favorable growth aspects than its peers.

Summary

Globalstar peers beat Globalstar on 6 of the 9 factors compared.

Globalstar Company Profile (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.

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