Reviewing Eutelsat Communications (OTCMKTS:EUTLF) and Iridium Communications (NASDAQ:IRDM)

Eutelsat Communications (OTCMKTS:EUTLF) and Iridium Communications (NASDAQ:IRDM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Volatility & Risk

Eutelsat Communications has a beta of -0.99, suggesting that its stock price is 199% less volatile than the S&P 500. Comparatively, Iridium Communications has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Eutelsat Communications and Iridium Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eutelsat Communications	$1.41 billion	N/A	-$1.23 billion	N/A	N/A
Iridium Communications	$830.68 million	3.19	$112.78 million	$0.99	25.21

Iridium Communications has lower revenue, but higher earnings than Eutelsat Communications.

Institutional and Insider Ownership

84.4% of Iridium Communications shares are owned by institutional investors. 2.4% of Iridium Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Eutelsat Communications and Iridium Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eutelsat Communications	N/A	N/A	N/A
Iridium Communications	13.20%	20.28%	4.27%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Eutelsat Communications and Iridium Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eutelsat Communications	1	1	0	0	1.50
Iridium Communications	0	1	5	1	3.00

Iridium Communications has a consensus target price of $34.3333, indicating a potential upside of 37.58%. Given Iridium Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Iridium Communications is more favorable than Eutelsat Communications.

Summary

Iridium Communications beats Eutelsat Communications on 11 of the 12 factors compared between the two stocks.

About Eutelsat Communications

Eutelsat Group, together with its subsidiaries, engages in the operation of telecommunication satellites. It provides capacity for video services, fixed data, and government services; and capacity in connectivity applications, such as fixed broadband and mobile connectivity. The company offers its services under the Eutelsat brand directly and through distributors. It operates 36 satellites in geostationary orbit. The company serves satellite-based video, business and broadband networks, and mobile services mainly to international telecommunications operators and broadcasters, corporate network integrators, companies, telecom operators, and government agencies in France, Italy, the United Kingdom, rest of Europe, the Americas, the Middle East, Africa, Asia, and internationally. The company was formerly known as Eutelsat Communications S.A. and changed its name to Eutelsat Group in October 2023. Eutelsat Group was founded in 1977 and is headquartered in Issy-les-Moulineaux, France.

About Iridium Communications

Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides hosted payload and other data services, such as satellite time and location services; and inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and other government agencies, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the United States government's dedicated gateway. Further, it provides satellite handsets, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. is headquartered in McLean, Virginia.