Critical Analysis: ORBCOMM (ORBC) vs. its Peers
ORBCOMM (NASDAQ: ORBC) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its rivals? We will compare ORBCOMM to related companies based off the strength of its institutional ownership, profitability, earnings, valuation, analyst recommendations, dividends and risk.
Institutional and Insider Ownership
78.5% of ORBCOMM shares are held by institutional investors. Comparatively, 40.4% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
ORBCOMM has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, ORBCOMM’s rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.
Valuation and Earnings
This table compares ORBCOMM and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|ORBCOMM||$202.00 million||$36.94 million||-23.98|
|ORBCOMM Competitors||$27.98 billion||$8.18 billion||-5.52|
ORBCOMM’s rivals have higher revenue and earnings than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.
This is a summary of recent ratings and target prices for ORBCOMM and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ORBCOMM presently has a consensus price target of $12.90, suggesting a potential upside of 19.56%. All “Wireless Telecommunications Services” companies have a potential upside of 21.27%. Given ORBCOMM’s rivals higher probable upside, analysts plainly believe ORBCOMM has less favorable growth aspects than its rivals.
This table compares ORBCOMM and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
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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