Norsat International (NYSE: NSAT) and Garmin (NASDAQ:GRMN) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitabiliy, dividends and valuation.

Insider & Institutional Ownership

41.4% of Garmin shares are owned by institutional investors. 18.3% of Garmin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Norsat International and Garmin’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Norsat International N/A N/A N/A N/A N/A
Garmin $3.04 billion 3.22 $726.79 million $3.55 14.68

Garmin has higher revenue and earnings than Norsat International.

Analyst Recommendations

This is a summary of current recommendations and price targets for Norsat International and Garmin, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Norsat International 0 0 0 0 N/A
Garmin 2 5 3 0 2.10

Garmin has a consensus price target of $51.17, indicating a potential downside of 1.79%. Given Garmin’s higher probable upside, analysts plainly believe Garmin is more favorable than Norsat International.

Profitability

This table compares Norsat International and Garmin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Norsat International 2.52% 2.10% 1.69%
Garmin 22.07% 15.55% 11.76%

Dividends

Garmin pays an annual dividend of $2.04 per share and has a dividend yield of 3.9%. Norsat International does not pay a dividend. Garmin pays out 57.5% of its earnings in the form of a dividend.

Summary

Garmin beats Norsat International on 9 of the 10 factors compared between the two stocks.

Norsat International Company Profile

Norsat International Inc. is a provider of communication solutions used by government organizations, militaries, transportation, resource and marine industry companies, news organizations, public safety search and rescue operators, and others. The Company operates through two segments: Sinclair Technologies and Satellite Communications. The Sinclair Technologies segment specializes in radio frequency (RF) antenna and filter products. The Satellite Communications segment provides over two categories of products: satellite terminals and microwave components. The Company’s solutions enable the transmission of data, audio and video for remote applications. The Company’s products and services include product design and development, production, distribution and infield support and service of fly-away satellite terminals, microwave components, antennas, RF conditioning products, maritime based satellite terminals and remote network connectivity solutions.

Garmin Company Profile

Garmin Ltd. (Garmin) and subsidiaries offer global positioning system (GPS) navigation and wireless devices and applications. The Company operates through five segments. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers products to consumers around the world, including Outdoor Handhelds, Wearable Devices, Golf Devices, and Dog Tracking and Training/Pet Obedience Devices. It offers a range of products designed for use in fitness and activity tracking. Garmin offers a range of products designed for use in fitness and activity tracking. Its aviation business segment is a provider of solutions to aircraft manufacturers, existing aircraft owners and operators, as well as military and government customers and serves a range of aircraft, including transport aircraft, business aviation, general aviation, experimental/light sport, helicopters, optionally piloted vehicles and unmanned aerial vehicles.

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