Reviewing ORBCOMM (ORBC) & The Competition

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for ORBCOMM and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 6 0 3.00
ORBCOMM Competitors 573 1702 1792 70 2.33

ORBCOMM presently has a consensus price target of $13.30, suggesting a potential upside of 29.13%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 21.71%. Given ORBCOMM’s stronger consensus rating and higher possible upside, research analysts plainly believe ORBCOMM is more favorable than its competitors.

Risk and Volatility

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

Profitability

This table compares ORBCOMM and its competitors’ 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% 3.14% -6.43%

Institutional & Insider Ownership

77.2% of ORBCOMM shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 9.5% of ORBCOMM shares are held by insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies 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.

Earnings and Valuation

This table compares ORBCOMM and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ORBCOMM $202.00 million $36.94 million -22.89
ORBCOMM Competitors $28.13 billion $8.22 billion -5.63

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

Summary

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

About ORBCOMM

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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