Comparing Globalstar (GSAT) and The Competition

This article examines the performance of Globalstar (GSAT) in relation to its competitors, focusing on key financial metrics and ownership structures.

Valuation & Earnings

The financial performance of Globalstar compared to its peers shows varying results in terms of revenue, earnings per share (EPS), and valuation. The following table illustrates these differences:

	Gross Revenue	Net Income	Price/Earnings Ratio
Globalstar	$241.58 million	-$24.72 million	-71.00
Globalstar Competitors	$2.51 billion	-$215.51 million	-12.11

Despite Globalstar reporting lower revenue than its competitors, it also has lower negative earnings. The price-to-earnings ratio indicates that Globalstar stock might be more competitively priced compared to similar companies in the industry.

Profitability

When assessing profitability, we can look at net margins, return on equity, and return on assets through the following comparative 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 exhibits better net margins and returns compared to its competitors, indicating relatively stronger profitability even amid ongoing challenges.

Insider and Institutional Ownership

Ownership of Globalstar shares is split between institutional investors and company insiders. Currently, 18.9% of shares are owned by institutions, while 61.0% are held by company insiders. In comparison, institutional ownership in other companies within the “Communication services” sector stands at 44.0%. This level of insider ownership suggests strong confidence from those closest to the company, which can indicate positive future performance.

Risk & Volatility

In terms of risk, Globalstar has a beta of 1.1, which means its shares are 10% more volatile than the overall market (S&P 500). In contrast, its competitors have an average beta of 1.61, making their shares 61% more volatile than the S&P 500. This places Globalstar in a position of relatively lower risk compared to its peers, making it an attractive option for some investors.

Summary

In summary, Globalstar outperformed its competitors in 5 out of the 9 key factors analyzed. This suggests that while the company faces challenges, it holds a competitive stance within the industry.

About Globalstar

Globalstar Inc. provides satellite voice and data services to a diverse range of users, operating in over 120 countries globally. Its service offerings include mobile and fixed satellite telephones, as well as data modems and adaptable service plans. Various sectors, such as oil and gas, government, and transportation, utilize Globalstar’s services to enhance operations in remote areas where traditional cellular coverage is unavailable.

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Globalstar, Competitors, Earnings, Valuation, Ownership