Globalstar (GSAT) and Its Market Position

Globalstar, Inc. is a prominent player in the satellite communication sector, providing voice and data services to users worldwide. As the company continues to operate in a competitive market, understanding its ownership structure, profitability, volatility, risk, earnings, and valuation is crucial. This article offers an overview of Globalstar's standing in comparison to its competitors.

Insider & Institutional Ownership

Currently, 18.9% of Globalstar's shares are held by institutional investors. This figure is notably lower than the average of 44.0% for companies classified under "Communication services, not elsewhere classified." In contrast, a significant 61.0% of Globalstar's shares are owned by company insiders, which is considerably higher than the average of 28.9% for similar companies. The notable institutional ownership indicates confidence from endowments, hedge funds, and major money managers in Globalstar's potential to outperform the market in the long term.

Profitability

Examining the profitability metrics, we compare Globalstar with its competitors based on net margins, return on equity, and return on assets:

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

These figures suggest that while Globalstar has a negative net margin, it outperforms its competitors in net margins and return on equity.

Volatility & Risk

In terms of stock price volatility, Globalstar has a beta of 1.07. This indicates that its stock is slightly more volatile than the S&P 500 by about 7%. In contrast, the average beta for Globalstar's competitors is 1.61, signifying that their stock prices are, on average, 61% more volatile than the S&P 500. This higher volatility among competitors presents a greater risk for investors.

Earnings & Valuation

A comparison of gross revenue, net income, and price-to-earnings ratios sheds light on Globalstar's valuation in its competitive landscape:

	Gross Revenue	Net Income	Price/Earnings Ratio
Globalstar	$241.58 million	-$24.72 million	-73.33
Competitors	$2.51 billion	-$215.51 million	-12.63

Although Globalstar generates lower gross revenue than its competitors, it is noteworthy that its losses are less significant. Moreover, Globalstar's lower price-to-earnings ratio indicates that the stock might be more affordable compared to others in the sector.

Summary

Overall, while Globalstar performs well in some profitability metrics and demonstrates lower price volatility compared to its competitors, it falls short when evaluated across various factors. Globalstar's competitors excel in five out of nine dimensions analyzed.

Globalstar Company Profile

Globalstar Inc. offers satellite communication services across more than 120 countries. Their product range includes mobile and fixed satellite telephones along with various data modems, suitable for both commercial and recreational use. Industries reliant on Globalstar's services include oil and gas, mining, government, and emergency preparedness, contributing to increased efficiency in remote locations out of reach from traditional cellular networks.

Globalstar, Ownership, Comparison, Performance, Revenue