Globalstar (GSAT) and The Competition: A Head-to-Head Analysis
Insider & Institutional Ownership
18.9% of Globalstar shares are owned by institutional investors. In contrast, institutional investors hold 44.0% of shares across all companies in the "Communication services, not elsewhere classified" sector. Additionally, company insiders hold a substantial 61.0% of Globalstar's shares, while the average for similar companies is only 28.9%. This strong level of institutional ownership often indicates confidence from hedge funds, large money managers, and endowments in Globalstar's potential for long-term market performance.
Profitability
When examining profitability between Globalstar and its competitors, relevant metrics include net margins, return on equity, and return on assets. The table below illustrates these comparisons:
Net Margins | Return on Equity | Return on Assets | |
Globalstar | -14.91% | -9.40% | -3.91% |
Globalstar Competitors | -464.18% | -25.98% | -2.26% |
Despite Globalstar's negative margins, its competitors are substantially less profitable, highlighting a relative strength within its operational performance.
Volatility & Risk
Globalstar's stock exhibits a beta of 1.07, suggesting it is 7% more volatile than the S&P 500 index. In comparison, the competitors' average beta is at 1.61, indicating that their stocks are 61% more volatile than the same index.
Earnings & Valuation
A further comparison of earnings and valuations reveals additional insights:
Gross Revenue | Net Income | Price/Earnings Ratio | |
Globalstar | $241.58 million | -$24.72 million | -73.33 |
Globalstar Competitors | $2.51 billion | -$215.51 million | -12.63 |
Although Globalstar has lower gross revenue compared to its competitors, it is also experiencing lower losses. Furthermore, Globalstar's price-to-earnings ratio is more favorable relative to its rivals, suggesting that the stock is more affordable at present.
Conclusion
Overall, in a comparison of various factors, Globalstar's competitors outperform it across five out of nine metrics analyzed.
Globalstar Company Overview
Globalstar Inc. provides satellite voice and data services to users around the globe, spanning over 120 countries. Their product lineup includes mobile and fixed satellite phones, both simplex and duplex satellite data modems, as well as flexible service options. Industries such as oil and gas, government, mining, and emergency preparedness benefit significantly from Globalstar's offerings, enhancing productivity in remote locations beyond the reach of traditional cellular and landline networks. The company's data solutions are particularly beneficial for asset tracking, data monitoring, and SCADA applications.
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Globalstar, Investment, Comparison