Critical comparison: Globalstar (GSAT) and its peers

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Globalstar (NYSE: GSAT – Get Rating) is one of 40 publicly traded companies in the “communications services, not elsewhere classified” sector, but how does it compare to its competitors? We will compare Globalstar to similar companies based on its dividend strength, analyst recommendations, valuation, earnings, profitability, institutional ownership and risk.

Insider and Institutional Ownership

17.8% of Globalstar shares are held by institutional investors. By comparison, 53.2% of the shares of all “Communication Services, Not Elsewhere Classified” companies are held by institutional investors. 62.2% of Globalstar shares are held by insiders of the company. By comparison, 20.6% of the shares of all “Communication Services, Not Elsewhere Classified” companies are held by insiders of the company. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of Globalstar and its competitors.

Net margins Return on equity return on assets
Globalstar -83.04% -25.83% -11.84%
Globalstar competitors -85.90% -62.26% -10.99%

Analyst Recommendations

This is a summary of recent ratings from Globalstar and its competitors, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Globalstar 0 0 0 0 N / A
Globalstar competitors 238 679 742 36 2.34

As a group, the “Communication Services, Not Elsewhere Classified” companies have an upside potential of 71.78%. Since Globalstar’s competitors have higher growth potential, analysts clearly believe that Globalstar has less favorable growth aspects than its competitors.

Risk and Volatility

Globalstar has a beta of 0.1, meaning its stock price is 90% less volatile than the S&P 500. Comparatively, Globalstar’s competitors have a beta of 1.51, meaning their average stock price is 51% more volatile than the S&P 500.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Globalstar and its competitors.

Gross revenue Net revenue Price/earnings ratio
Globalstar $124.30 million -$112.63 million -19.33
Globalstar competitors $3.40 billion $369.68 million 1.27

Globalstar’s competitors have higher revenues and profits than Globalstar. Globalstar trades at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Globalstar’s competitors beat Globalstar on 7 of the 10 factors compared.

About Globalstar (Get a rating)

Globalstar, Inc. provides mobile satellite services worldwide. The Company offers two-way duplex voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational use, security, disaster preparedness and response. emergency, and other applications; fixed voice and data communications satellite services and equipment at industrial, commercial and residential sites, as well as on rural villages and ships; and data modem services and equipment. It also provides SPOT retail products, such as SPOT satellite GPS messaging for personal tracking, emergency locating 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 for tracking freight containers and railcars, as well as monitoring utility meters and oil and gas assets. Additionally, it wholesales minutes to Independent Gateway Operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and the installation of footbridges and antennas. The Company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGO, sales force and e-commerce website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves the leisure and consumer, government, public safety and disaster relief, oil and gas, shipping and fishing, construction, utility and transportation, as well as natural resources, mining and forestry. Globalstar, Inc. has entered into a strategic alliance with XCOM Labs to jointly market XCOM’s capacity multiplier technology with Globalstar’s n53 band for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is based in Covington, Louisiana.



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