Globalstar (GSAT) vs. Competitors: A Comprehensive Comparison

Globalstar (GSAT) is a prominent player in the satellite communication industry, offering voice and data services across more than 120 countries. Understanding how it stacks up against its competitors is important for investors and stakeholders. This article highlights key areas, including ownership structure, profitability, risk volatility, and earnings analysis, to provide a clear head-to-head contrast.

Insider & Institutional Ownership

A total of 18.9% of Globalstar's shares are owned by institutional investors. This is notably lower than the 44.0% average for companies within the "Communication services, not elsewhere classified" sector. Furthermore, 61.0% of Globalstar's shares are retained by company insiders. In contrast, only 28.9% of shares in the same sector are held by insiders. Strong institutional ownership typically suggests that large financial entities, such as endowments and hedge funds, believe in the company's potential for long-term market outperformance.

Profitability Comparison

Examining profitability metrics reveals that Globalstar has net margins of -14.91%, which reflects a loss. The return on equity stands at -9.40%, while the return on assets is at -3.91%. Comparatively, Globalstar's competitors exhibit a much harsher scenario, with net margins at -464.18%, a return on equity of -25.98%, and a return on assets of -2.26%. This indicates that while Globalstar is incurring losses, it is performing relatively better than its competitors.

Volatility & Risk Assessment

When analyzing stock volatility, Globalstar has a beta of 1.07. This suggests that its stock is approximately 7% more volatile than that of the S&P 500 index. In comparison, the average beta for Globalstar’s competitors is 1.61, meaning their stocks are significantly more volatile, being 61% more prone to fluctuations than the S&P 500.

Earnings & Valuation Insights

The earnings and valuation landscape shows that Globalstar generates gross revenue of about $241.58 million, with a net income loss of $24.72 million. Its price-to-earnings ratio is notably negative at -73.33. In comparison, its competitors generate gross revenues totaling approximately $2.51 billion, while their net income loss is significantly higher at $215.51 million, with a price-to-earnings ratio of -12.63. This suggests that while Globalstar has lower revenues, it also has a relatively smaller loss and is trading at a more favorable price-to-earnings ratio compared to its competitors.

Overall Summary

In a comprehensive evaluation, Globalstar’s competitors surpass it in 5 out of the 9 factors examined. Despite this, Globalstar shows strengths in better profitability metrics relative to its industry competitors and maintains a more favorable price-to-earnings ratio. Such contrasts underscore the varying financial dynamics within the satellite communication sector.

Company Profile

Globalstar Inc. excels in providing satellite communication services to both commercial and recreational users worldwide. Its product range includes mobile and fixed satellite phones, data modems, and various service packages that benefit several industries including oil and gas, government agencies, and emergency services. Globalstar’s solutions are essential for efficient operations in remote areas lacking traditional cellular coverage.

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Globalstar, Competition, Ownership