Globalstar (NASDAQ:GSAT – Get Free Report) and Liberty Global (NASDAQ:LILAK – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Valuation & Earnings
This table compares Globalstar and Liberty Global”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globalstar | $272.99 million | 39.27 | -$8.65 million | ($0.15) | -554.93 |
| Liberty Global | $4.44 billion | 0.39 | -$611.20 million | ($2.48) | -3.45 |
Risk and Volatility
Globalstar has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Profitability
This table compares Globalstar and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globalstar | -6.84% | -3.75% | -0.61% |
| Liberty Global | -2.20% | -8.50% | -0.82% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Globalstar and Liberty Global, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globalstar | 0 | 4 | 2 | 0 | 2.33 |
| Liberty Global | 1 | 2 | 0 | 0 | 1.67 |
Globalstar presently has a consensus price target of $69.00, indicating a potential downside of 17.11%. Liberty Global has a consensus price target of $8.10, indicating a potential downside of 5.37%. Given Liberty Global’s higher possible upside, analysts plainly believe Liberty Global is more favorable than Globalstar.
Institutional and Insider Ownership
18.9% of Globalstar shares are owned by institutional investors. Comparatively, 53.0% of Liberty Global shares are owned by institutional investors. 60.0% of Globalstar shares are owned by company insiders. Comparatively, 9.7% of Liberty Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Globalstar beats Liberty Global on 9 of the 14 factors compared between the two stocks.
About Globalstar
Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM’s capacity-multiplying technology with Globalstar’s Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.
About Liberty Global
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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