Globalstar (GSAT) vs. Its Rivals: A Comprehensive Comparison
In this article, we compare Globalstar (GSAT) with its competitors across various financial metrics to understand its standing in the market.
Profitability
The profitability of Globalstar is assessed through net margins, return on equity, and return on assets, as shown in the following table.
Net Margins | Return on Equity | Return on Assets | |
Globalstar | -14.91% | -9.40% | -3.91% |
Globalstar Competitors | -464.18% | -25.98% | -2.26% |
Globalstar shows relatively better margins and returns compared to its peers, which display more significant negative figures across these metrics.
Earnings & Valuation
This section compares gross revenues, net incomes, and price-to-earnings ratios of Globalstar and its rivals.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Globalstar | $241.58 million | -$24.72 million | -71.67 |
Globalstar Competitors | $2.51 billion | -$215.51 million | -12.14 |
Globalstar's revenue is significantly lower compared to its competitors, but it maintains a better price-to-earnings ratio, suggesting it may be a more affordable investment at this time.
Institutional & Insider Ownership
Ownership structures are an important indicator of confidence in a company. Currently, 18.9% of Globalstar shares are owned by institutional investors, while the average for its industry peers is 44.0%. Additionally, 61.0% of Globalstar shares are held by insiders, compared to 28.9% for other companies in the communication services sector. This robust insider ownership signals strong belief in the company's potential for long-term growth.
Volatility & Risk
Risk assessment through beta values shows that Globalstar has a beta of 1.1, indicating its shares are 10% more volatile than the S&P 500. In contrast, Globalstar's competitors have an average beta of 1.61, meaning they are 61% more volatile than the S&P 500. This suggests that investing in Globalstar may come with comparatively lower risk.
Summary
In summary, Globalstar outperformed its competitors in 5 out of the 9 factors evaluated in this comparison. This highlights its relatively stable financial position despite some challenges.
Globalstar Company Profile
Globalstar Inc. provides satellite voice and data services to both commercial and recreational users across over 120 countries. Their offerings include mobile and fixed satellite phones, data modems, and various service packages. The company serves multiple sectors such as oil and gas, government, mining, and military, enhancing productivity in regions lacking cellular and landline services.
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Globalstar, Comparison, Investing