Globalstar (GSAT) and Its Competition: A Detailed Comparison

Globalstar Inc. is a key player in the satellite communication sector, providing various voice and data services to both commercial and recreational users across more than 120 countries globally. They offer products like mobile and fixed satellite phones, data modems, and flexible service packages, which cater to several industries such as oil and gas, government, mining, and emergency preparedness.

Insider & Institutional Ownership

Currently, institutional investors hold 18.9% of Globalstar's shares. In contrast, the average institutional ownership among companies in the "Communication services, not elsewhere classified" sector stands at 44.0%. Furthermore, a significant portion of Globalstar's equity, about 61.0%, is held by company insiders, compared to only 28.9% for the broader sector. High levels of institutional ownership often suggest confidence from large investment firms, hedge funds, and similar entities in a company's long-term performance.

Profitability

When we analyze profitability, Globalstar shows a net margin of -14.91%, a return on equity of -9.40%, and a return on assets of -3.91%. In comparison, its competitors suffer from even lower net margins, with an average of -464.18%, a return on equity of -25.98%, and a return on assets of -2.26%. This indicates that while Globalstar is not profitable, it fares better than many of its rivals on these fronts.

Volatility & Risk

Globalstar's stock exhibits a beta of 1.07, meaning it is 7% more volatile than the S&P 500 index. On the other hand, competitors in the market have a higher average beta of 1.61, indicating that their stock prices are typically 61% more volatile. This suggests that while Globalstar is not immune to market swings, it is less exposed to volatility than several competitors.

Earnings & Valuation

In terms of earnings and valuation, Globalstar has gross revenue amounting to $241.58 million and a net income loss of $24.72 million, giving it a price-to-earnings ratio of -73.33. Interestingly, its competitors have higher gross revenue at $2.51 billion but face equally troubling earnings with a net loss of $215.51 million and a price-to-earnings ratio of -12.63. This multifaceted picture indicates that despite Globalstar's smaller earnings, it is currently more affordable based on its price-to-earnings ratio compared to competitors.

Summary

A head-to-head comparison reveals that Globalstar's competitors outperform it in five out of the nine metrics analyzed. This indicates that while Globalstar is a noteworthy entity in the market, it faces strong competition.

Globalstar Company Profile

Globalstar Inc. specializes in offering satellite communication services that enhance productivity for various sectors in remote areas lacking cellular and landline connectivity. Its client base spans numerous industries, including utilities, transportation, military, and individual recreational users, providing tracking and data monitoring solutions.

Globalstar, Competition, Investors