Globalstar (NASDAQ:GSAT) and Intelsat (OTCMKTS:INTEQ) Critical Survey

Globalstar (NASDAQ:GSAT) and Intelsat (OTCMKTS:INTEQ) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Globalstar and Intelsat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalstar	0	0	0	1	4.00
Intelsat	0	0	0	0	0.00

Given Intelsat’s higher probable upside, analysts plainly believe Intelsat is more favorable than Globalstar.

Valuation and Earnings

This table compares Globalstar and Intelsat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globalstar	$250.35 million	15.80	-$63.16 million	($0.45)	-69.40
Intelsat	N/A	N/A	N/A	N/A	N/A

Intelsat has lower revenue, but higher earnings than Globalstar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globalstar	-17.80%	-1.17%	-0.27%
Intelsat	N/A	N/A	N/A

Insider and Institutional Ownership

18.9% of Globalstar shares are held by institutional investors. 61.0% of Globalstar shares are held by insiders. Comparatively, 1.8% of Intelsat shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Globalstar beats Intelsat on 5 of the 9 factors compared between the two stocks.

About Globalstar

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 Intelsat

Intelsat SA provides satellite services business, which provides a layer in the global communications infrastructure. It offers communication services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications, multinational corporations and Internet Service Providers (ISPs). The company also provides commercial satellite capacity to the U.S. government and other select military organizations and their contractors. Intelsat was founded on August 20, 1964 and is headquartered in Luxembourg.