Comparing Globalstar (GSAT) and Its Rivals

On December 19, 2024, we explore the performance of Globalstar (GSAT) in comparison to its competitors within the communications sector.

Institutional and Insider Ownership

Globalstar has about 18.9% of its shares owned by institutional investors. In contrast, companies in the broader category of "Communication services, not elsewhere classified" have an average institutional ownership of 44%. Additionally, 61.0% of Globalstar's shares are held by company insiders, compared to just 28.9% for its industry peers. This substantial institutional ownership often signals confidence among investors such as endowments and hedge funds regarding Globalstar's long-term market performance.

Volatility & Risk

In terms of stock price volatility, Globalstar has a beta of 1.1, indicating that its stock is 10% more volatile than that of the S&P 500 index. On the other hand, Globalstar's competitors have a higher average beta of 1.58, suggesting that their stock prices are 58% more unstable compared to the S&P 500.

Profitability

The profitability of Globalstar can be assessed through net margins, return on equity, and return on assets, as illustrated in the following table:

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

From the data, it is evident that Globalstar performs better in net margins and returns compared to its peers in the sector.

Valuation and Earnings

The following table compares the gross revenue, net income, and price-to-earnings (P/E) ratio between Globalstar and its competitors:

	Gross Revenue	Net Income	Price/Earnings Ratio
Globalstar	$241.58 million	-$24.72 million	-61.67
Globalstar Competitors	$2.51 billion	-$215.51 million	-10.27

While Globalstar’s revenue is significantly lower than its competitors, it trades at a more affordable price-to-earnings ratio, which may present a value opportunity for investors.

Summary

In concluding the comparison, Globalstar outperformed its rivals in four out of the nine evaluated criteria.

Globalstar Company Profile

Globalstar Inc. provides satellite voice and data services to a range of customers across more than 120 countries worldwide. Its offerings encompass mobile and fixed satellite telephones, along with various satellite data modems and services tailored for both commercial and recreational usage. Key industries benefiting from Globalstar services include oil and gas, government, and transportation among others, enhancing productivity in locations outside conventional cellular or landline coverage. Their solutions are also well-suited for tracking assets and data monitoring applications.

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Globalstar, Investment, Performance