ORBCOMM (NASDAQ: ORBC) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its peers? We will compare ORBCOMM to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Profitability

This table compares ORBCOMM and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -15.52% -6.16% -3.25%
ORBCOMM Competitors -999.64% 3.16% -6.42%

Analyst Ratings

This is a summary of current ratings and price targets for ORBCOMM and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 6 0 3.00
ORBCOMM Competitors 572 1701 1789 69 2.33

ORBCOMM presently has a consensus target price of $13.30, suggesting a potential upside of 25.83%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 20.94%. Given ORBCOMM’s stronger consensus rating and higher possible upside, analysts plainly believe ORBCOMM is more favorable than its peers.

Insider and Institutional Ownership

78.5% of ORBCOMM shares are owned by institutional investors. Comparatively, 40.4% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 9.5% of ORBCOMM shares are owned by company insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares ORBCOMM and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ORBCOMM $202.00 million $36.94 million -23.49
ORBCOMM Competitors $26.97 billion $8.00 billion -5.54

ORBCOMM’s peers have higher revenue and earnings than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

ORBCOMM has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, ORBCOMM’s peers have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Summary

ORBCOMM beats its peers on 7 of the 12 factors compared.

ORBCOMM Company Profile

ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.

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