Contrasting Globalstar (GSAT) & Its Peers

Globalstar (NYSEARCA:GSAT) is one of 32 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 dividends, institutional ownership, analyst recommendations, earnings, profitability, valuation and risk.

Insider & Institutional Ownership

18.9% of Globalstar shares are held by institutional investors. Comparatively, 47.3% of shares of all “Communication services, not elsewhere classified” companies are held by institutional investors. 61.0% of Globalstar shares are held by insiders. Comparatively, 24.6% of shares of all “Communication services, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Globalstar and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalstar	0	0	1	0	3.00
Globalstar Competitors	157	315	498	19	2.38

Globalstar presently has a consensus target price of $5.00, suggesting a potential upside of 152.53%. As a group, “Communication services, not elsewhere classified” companies have a potential upside of 20.25%. Given Globalstar’s stronger consensus rating and higher probable upside, research analysts clearly believe Globalstar is more favorable than its peers.

Valuation & Earnings

This table compares Globalstar and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Globalstar	$223.81 million	-$24.72 million	-66.00
Globalstar Competitors	$2.71 billion	-$232.86 million	-5.60

Globalstar’s peers have higher revenue, but lower 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	-14.91%	-9.49%	-3.90%
Globalstar Competitors	-528.36%	-28.35%	-2.02%

Volatility and Risk

Globalstar has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Globalstar’s peers have a beta of 1.63, suggesting that their average share price is 63% more volatile than the S&P 500.

Summary

Globalstar beats its peers on 7 of the 13 factors compared.

About Globalstar

Globalstar, Inc. provides mobile satellite services in the United States, Canada, Europe, Central and South America, and internationally. 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. It also provides one-way or two-way communications and data transmissions using mobile devices, including the SPOT family of products, such as SPOT X, SPOT Gen4, and SPOT Trace that transmit messages and the location of the device; commercial Internet of Things transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets; small satellite transmitter modules comprising the STX-3, ST-150 and ST100, and chips that enable an integrator’s products to access its network; engineering and other communication services using MSS and terrestrial spectrum licenses; undertakes installation of gateways and antennas; and hardware and software products design and development services. The company distributes its products through retailers and sales force, as well as www.findmespot.com e-commerce website. Globalstar, Inc. serves recreation and personal, government, public safety and disaster relief, oil and gas, animal tracking, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, leisure, emergency services, agriculture, and forestry markets. The company was founded in 1993 and is headquartered in Covington, Louisiana.