Companies

Globalstar (GSAT) vs. Its Rivals: A Comprehensive Comparison

Published December 29, 2024

This article presents a detailed comparison between Globalstar (GSAT) and its competitors in the satellite communication industry. We will evaluate various aspects such as profitability, earnings, valuation, ownership structure, and volatility.

Profitability

The following table illustrates the net margins, return on equity, and return on assets for Globalstar and its rivals.

Net MarginsReturn on EquityReturn on Assets
Globalstar-14.91%-9.40%-3.91%
Globalstar Competitors-464.18%-25.98%-2.26%

Earnings & Valuation

This section outlines the gross revenue, net income, and the price-to-earnings ratio for Globalstar compared to its industry peers.

Gross RevenueNet IncomePrice/Earnings Ratio
Globalstar$241.58 million-$24.72 million-71.67
Globalstar Competitors$2.51 billion-$215.51 million-12.14

While Globalstar has lower gross revenue than its competitors, it is worth noting that it nonetheless faces lower net losses. Furthermore, Globalstar’s lower price-to-earnings ratio suggests it may represent a more affordable investment opportunity in comparison to its peers.

Institutional & Insider Ownership

Institutional investors hold 18.9% of Globalstar shares, which is lower than the 44.0% average for other companies in the “Communication services, not elsewhere classified” sector. Additionally, insider ownership is significantly higher for Globalstar at 61.0%, compared to the industry average of 28.9%. Such strong insider ownership can indicate confidence in the company’s future growth potential.

Volatility & Risk

Globalstar possesses a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500 index. In contrast, the average beta for Globalstar's competitors is 1.61, reflecting a greater volatility of 61% more than the S&P 500.

Summary

In summary, Globalstar's rivals excel in 5 of the 9 evaluation factors compared. However, Globalstar shows strengths in certain areas, making it an appealing choice for specific investors.

Globalstar Company Overview

Globalstar Inc. provides satellite communication services, both voice and data, to users across more than 120 countries. Their offerings include various satellite phones, data modems, and customizable service packages. The company serves diverse sectors including oil and gas, government, and maritime industries, particularly enhancing productivity in regions where conventional cellular communication is unavailable. Globalstar's data solutions cater to asset monitoring, personal tracking, and other data verification applications.

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Globalstar, Comparison, Profitability