Head-To-Head Review: Globalstar (NASDAQ:GSAT) and TELUS (NYSE:TU)

TELUS (NYSE:TU) and Globalstar (NASDAQ:GSAT) are both large-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

49.4% of TELUS shares are owned by institutional investors. Comparatively, 18.9% of Globalstar shares are owned by institutional investors. 0.1% of TELUS shares are owned by insiders. Comparatively, 60.0% of Globalstar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares TELUS and Globalstar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.71 billion	0.86	$796.57 million	($0.41)	-19.52
Globalstar	$272.99 million	39.24	-$8.65 million	($0.51)	-162.12

TELUS has higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than TELUS, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TELUS has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Globalstar has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares TELUS and Globalstar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS	-4.51%	8.01%	2.21%
Globalstar	-22.25%	-16.66%	-2.43%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TELUS and Globalstar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	4	9	3	0	1.94
Globalstar	2	3	1	0	1.83

TELUS currently has a consensus price target of $15.00, suggesting a potential upside of 87.38%. Globalstar has a consensus price target of $75.67, suggesting a potential downside of 8.48%. Given TELUS’s stronger consensus rating and higher probable upside, research analysts clearly believe TELUS is more favorable than Globalstar.

Summary

TELUS beats Globalstar on 10 of the 13 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

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.