Globalstar (GSAT) and Its Competitive Landscape

Globalstar (GSAT) is a notable provider of satellite voice and data services, catering to commercial and recreational users across more than 120 countries. Understanding its market position involves examining various aspects of ownership, profitability, volatility, and valuation against its competitors.

Insider & Institutional Ownership

Currently, 18.9% of Globalstar's shares are owned by institutional investors. In contrast, a significant 44.0% of shares in the broader category of "Communication services, not elsewhere classified" are held by institutional investors. Furthermore, company insiders hold a substantial 61.0% of Globalstar's shares, compared to 28.9% for all companies in the same segment. High institutional ownership often signals confidence from major investors like endowments and hedge funds, suggesting they believe in the company's long-term growth potential.

Profitability Comparison

When analyzing the profitability metrics, Globalstar shows a net margin of -14.91%, while its competitors exhibit significantly lower margins, averaging -464.18%. Additionally, Globalstar's return on equity stands at -9.40%, slightly better than its competitors' average of -25.98%. For return on assets, Globalstar registers -3.91%, compared to -2.26% for its competitors. These figures highlight Globalstar's struggles but also suggest it is performing better than many peers.

	Net Margins	Return on Equity	Return on Assets
Globalstar	-14.91%	-9.40%	-3.91%
Globalstar Competitors	-464.18%	-25.98%	-2.26%

Volatility & Risk Assessment

Globalstar's stock has a beta of 1.07, indicating a 7% higher volatility compared to the S&P 500. Conversely, its competitors carry a higher average beta of 1.61, suggesting their stock prices are 61% more volatile relative to the market. This means that while Globalstar is not without risk, its stock is less volatile compared to its rivals.

Earnings & Valuation Insights

Examining gross revenue, Globalstar reports $241.58 million, while its competitors collectively generate $2.51 billion. Despite higher revenue, competitors reported a combined net income loss of -$215.51 million, which is worse than Globalstar's net income loss of -$24.72 million. In terms of valuation, Globalstar's price-to-earnings ratio is -73.33, indicating it is currently trading at a lower valuation compared to its competitors' average of -12.63, making it seem more affordable in comparison.

	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

Conclusion

In a head-to-head comparison with its competitors, Globalstar outshines in several key areas, outperforming them in 5 of the total 9 factors considered. This aligns with the notion that while it faces challenges, Globalstar possesses several strengths that make it a robust player in the satellite communication sector.

Globalstar Company Profile

GLOBALSTAR INC provides satellite voice and data services tailored for both commercial and recreational use, with offerings including mobile and fixed satellite phones, as well as various satellite data modems. Several industries, particularly in land-based and maritime sectors, benefit from Globalstar's solutions by enhancing operational efficiency in areas lacking cellular or landline connectivity. The company's diverse clientele includes sectors such as oil and gas, government, and emergency services, among others.

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Globalstar, ownership, profitability, risk, valuation