Globalstar (NYSE:GSAT – Get Rating) and Telesat (NASDAQ:TSAT – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
Globalstar has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Globalstar and Telesat, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globalstar | 0 | 0 | 0 | 0 | N/A |
| Telesat | 0 | 0 | 0 | 0 | N/A |
Valuation & Earnings
This table compares Globalstar and Telesat’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globalstar | $148.50 million | 13.09 | -$256.92 million | ($0.12) | -9.00 |
| Telesat | $756.82 million | 0.13 | -$18.00 million | ($1.98) | -3.93 |
Telesat has higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than Telesat, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
18.1% of Globalstar shares are held by institutional investors. 62.2% of Globalstar shares are held by insiders. Comparatively, 40.6% of Telesat shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Globalstar and Telesat’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globalstar | -138.36% | -84.76% | -27.41% |
| Telesat | -4.09% | -1.68% | -0.47% |
Summary
Telesat beats Globalstar on 7 of the 11 factors compared between the two stocks.
About Globalstar
Globalstar, Inc. engages in the provision of mobile satellite services. It offers voice and data communications services to the following markets: recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, natural resources, mining, and forestry, construction, utilities, and transportation. The company was founded in November 2003 and is headquartered in Covington, LA.
About Telesat
Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.
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