Critical Contrast: KORE Group (NYSE:KORE) vs. uCloudlink Group (NASDAQ:UCL)

uCloudlink Group (NASDAQ:UCL) and KORE Group (NYSE:KORE) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Insider and Institutional Ownership

85.5% of uCloudlink Group shares are owned by institutional investors. Comparatively, 57.5% of KORE Group shares are owned by institutional investors. 54.6% of uCloudlink Group shares are owned by company insiders. Comparatively, 0.8% of KORE Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for uCloudlink Group and KORE Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
uCloudlink Group	0	0	0	0	N/A
KORE Group	0	2	3	0	2.60

KORE Group has a consensus target price of $2.94, indicating a potential upside of 259.46%. Given KORE Group’s higher possible upside, analysts clearly believe KORE Group is more favorable than uCloudlink Group.

Earnings and Valuation

This table compares uCloudlink Group and KORE Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
uCloudlink Group	$85.58 million	0.63	$2.81 million	$0.08	17.88
KORE Group	$276.61 million	0.25	-$167.04 million	($1.93)	-0.42

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

Risk and Volatility

uCloudlink Group has a beta of 4.43, indicating that its share price is 343% more volatile than the S&P 500. Comparatively, KORE Group has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.

Profitability

This table compares uCloudlink Group and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
uCloudlink Group	3.28%	18.58%	5.27%
KORE Group	-60.39%	-85.34%	-14.75%

Summary

uCloudlink Group beats KORE Group on 10 of the 13 factors compared between the two stocks.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company's products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.