Globalstar (GSAT) and The Competition Critical Analysis

Globalstar (NYSEARCA:GSAT) is one of 32 public companies in the “Communication services, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Globalstar to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Globalstar and its rivals, 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 currently has a consensus price target of $5.00, suggesting a potential upside of 133.64%. As a group, “Communication services, not elsewhere classified” companies have a potential upside of 21.29%. Given Globalstar’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Globalstar is more favorable than its rivals.

Institutional and Insider 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.

Profitability

This table compares Globalstar and its rivals’ 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, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Globalstar’s rivals have a beta of 1.63, indicating that their average share price is 63% more volatile than the S&P 500.

Earnings and Valuation

This table compares Globalstar and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Globalstar	$223.81 million	-$24.72 million	-71.33
Globalstar Competitors	$2.71 billion	-$232.86 million	-5.45

Globalstar’s rivals have higher revenue, but lower earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

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

Globalstar Company Profile

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.