Iridium Communications (NASDAQ:IRDM) and Risk (George) Industries (OTCMKTS:RSKIA) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Iridium Communications and Risk (George) Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iridium Communications 1 1 3 0 2.40
Risk (George) Industries 0 0 0 0 N/A

Iridium Communications currently has a consensus price target of $21.44, indicating a potential upside of 10.39%. Given Iridium Communications’ higher possible upside, research analysts clearly believe Iridium Communications is more favorable than Risk (George) Industries.

Volatility and Risk

Iridium Communications has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Risk (George) Industries has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Dividends

Risk (George) Industries pays an annual dividend of $0.38 per share and has a dividend yield of 4.7%. Iridium Communications does not pay a dividend.

Profitability

This table compares Iridium Communications and Risk (George) Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iridium Communications 26.88% 1.01% 0.40%
Risk (George) Industries 19.65% 7.15% 6.55%

Institutional and Insider Ownership

85.9% of Iridium Communications shares are owned by institutional investors. Comparatively, 0.0% of Risk (George) Industries shares are owned by institutional investors. 5.6% of Iridium Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Iridium Communications and Risk (George) Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iridium Communications $448.05 million 4.83 $233.85 million $0.70 27.74
Risk (George) Industries $11.93 million 3.38 $2.54 million N/A N/A

Iridium Communications has higher revenue and earnings than Risk (George) Industries.

Summary

Iridium Communications beats Risk (George) Industries on 10 of the 13 factors compared between the two stocks.

Iridium Communications Company Profile

Iridium Communications, Inc. is a mobile voice and data satellite communications network. Its satellite network provides communication where terrestrial wireless or wireline networks do not exist or are limited. The company’s current principal lines of business include Land Mobile, Maritime, Aviation, and Government. The Land Mobile business engages in the provision of mobile satellite communications services to the land mobile sector, providing handset services to areas not served or inconsistently served by existing terrestrial communications networks. The Maritime business provides broadband terminals, embedded devices and handsets. Its market space includes merchant shipping, fishing, research vessels and specialized water craft. The Aviation business provides mobile satellite communications services to the aviation sector. Its services are used in commercial and global government aviation applications, principally by corporate jets, corporate and government helicopter fleets, specialized general aviation fleets, such as medevac companies and fire suppression fleets, and high-end personal aircraft. The Government business line involves in the provision of mobile satellite communications services to the U.S. government, principally the Department of Defense. Its voice products are used for a variety of primary and backup communications solutions, including tactical operations, logistical, administrative, morale and welfare, and emergency communications. The company’s commercial services includes: Postpaid Mobile Voice and Data Satellite Communications; Prepaid Mobile Voice Satellite Communications; Iridium PTT; Broadband Data; and Machine-to-Machine services. Iridium Communications was founded on November 2, 2007 and is headquartered in McLean, VA.

Risk (George) Industries Company Profile

George Risk Industries, Inc. designs, manufactures, and sells various electronic components. It offers computer keyboards, push button switches, burglar alarm components and systems, pool alarms, thermostats, EZ duct wire covers, and water sensors, as well as door and window contact switches, environmental products, wire and cable installation tools, and proximity switches. The company's products are used for residential, commercial, industrial, and government installations. George Risk Industries, Inc. sells its products to security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards of proprietary design worldwide. The company was incorporated in 1967 and is headquartered in Kimball, Nebraska.

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