Critical Review: SoftBank Group (OTCMKTS:SFTBY) & Iridium World Communications (OTCMKTS:IRIDQ)

SoftBank Group (OTCMKTS:SFTBY) and Iridium World Communications (OTCMKTS:IRIDQ) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares SoftBank Group and Iridium World Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoftBank Group	41.42%	20.96%	6.65%
Iridium World Communications	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of SoftBank Group shares are held by institutional investors. 4.1% of Iridium World Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

SoftBank Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Iridium World Communications has a beta of 9.21, suggesting that its stock price is 821% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for SoftBank Group and Iridium World Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftBank Group	0	1	2	0	2.67
Iridium World Communications	0	0	0	0	0.00

Given Iridium World Communications’ higher probable upside, analysts plainly believe Iridium World Communications is more favorable than SoftBank Group.

Valuation and Earnings

This table compares SoftBank Group and Iridium World Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftBank Group	$47.57 billion	0.83	$7.71 billion	$7.28	1.91
Iridium World Communications	N/A	N/A	N/A	N/A	N/A

SoftBank Group has higher revenue and earnings than Iridium World Communications.

Summary

SoftBank Group beats Iridium World Communications on 7 of the 10 factors compared between the two stocks.

About SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

About Iridium World Communications

In August 1999, Iridium World Communications Ltd. filed a voluntary petition under Chapter 11 of the United States Bankruptcy Court, and operated as a debtor-in-possession. Iridium World Communications, Ltd. was engaged in the ownership and participation in the management of Iridium LLC, its parent company, which owned Iridium Operating LLC (Iridium), as of March 31, 1999. Iridium operated as a global wireless telecommunications company. It enabled its customers to make and receive phone calls, and receive pages virtually anywhere in the world. The company was founded in 1991 and is based in Hamilton, Bermuda.