Financial Review: Ubiquiti Networks (UBNT) & Loral Space and Communications (LORL)
Ubiquiti Networks (NASDAQ: UBNT) and Loral Space and Communications (NASDAQ:LORL) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
30.9% of Ubiquiti Networks shares are held by institutional investors. Comparatively, 69.2% of Loral Space and Communications shares are held by institutional investors. 70.3% of Ubiquiti Networks shares are held by insiders. Comparatively, 40.6% of Loral Space and Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Ubiquiti Networks and Loral Space and Communications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ubiquiti Networks||$865.27 million||6.11||$296.87 million||$3.09||21.31|
|Loral Space and Communications||N/A||N/A||-$7.76 million||$1.57||27.68|
Ubiquiti Networks has higher revenue and earnings than Loral Space and Communications. Ubiquiti Networks is trading at a lower price-to-earnings ratio than Loral Space and Communications, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ubiquiti Networks has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Loral Space and Communications has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Ubiquiti Networks and Loral Space and Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Loral Space and Communications||0||0||0||0||N/A|
Ubiquiti Networks currently has a consensus target price of $54.67, suggesting a potential downside of 17.00%. Given Ubiquiti Networks’ higher possible upside, analysts clearly believe Ubiquiti Networks is more favorable than Loral Space and Communications.
This table compares Ubiquiti Networks and Loral Space and Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Loral Space and Communications||N/A||25.55%||16.33%|
Ubiquiti Networks beats Loral Space and Communications on 9 of the 12 factors compared between the two stocks.
Ubiquiti Networks Company Profile
Ubiquiti Networks, Inc. develops performance networking technology for service providers and enterprises. The Company offers a portfolio of networking products and solutions. Its service provider product platforms provide carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. Its enterprise product platforms provide wireless local area network (WLAN) infrastructure, video surveillance products, switching and routing solutions, and machine-to-machine communication components. Its products and solutions include radios, antennas, software, communications protocols and management tools that are designed to deliver carrier and enterprise class wireless broadband access and other services primarily in the unlicensed radio frequency spectrum. Its service provider and carrier solutions include Base Station/Backhaul/Customer Premise Equipment (CPE)/Bridge-airMAX, Network Routing Platform-EdgeMAX and Point-to-point Wireless Backhaul-airFiber.
Loral Space and Communications Company Profile
Loral Space & Communications Inc. is a satellite communications company. The Company, through its ownership interests in affiliates, is engaged in satellite-based communications services. The Company participates in satellite services operations through its interest in Telesat Holdings Inc., which owns Telesat Canada (Telesat), a global fixed satellite services (FSS) operator, with offices and facilities around the world. Telesat’s broadcast services business include direct to home services; video distribution and contribution, and occasional use services. Telesat owns and leases a satellite fleet that operates in geosynchronous earth orbit. Telesat’s enterprise services include telecommunication carrier and integrator services; government services; Consumer broadband services; resource services; maritime and aeronautical services; retail services, and satellite operator services. Telesat is a consultant in establishing, operating and upgrading satellite systems around the world.
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