Financial Review: ORBCOMM (ORBC) versus CalAmp Corp. (CAMP)
ORBCOMM (NASDAQ: ORBC) and CalAmp Corp. (NASDAQ:CAMP) 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 profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Insider & Institutional Ownership
77.2% of ORBCOMM shares are owned by institutional investors. Comparatively, 72.4% of CalAmp Corp. shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by insiders. Comparatively, 5.3% of CalAmp Corp. shares are owned 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.
This is a breakdown of recent recommendations for ORBCOMM and CalAmp Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ORBCOMM currently has a consensus target price of $13.30, indicating a potential upside of 18.33%. CalAmp Corp. has a consensus target price of $23.29, indicating a potential upside of 1.37%. Given ORBCOMM’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ORBCOMM is more favorable than CalAmp Corp..
Volatility & Risk
ORBCOMM has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, CalAmp Corp. has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Valuation and Earnings
This table compares ORBCOMM and CalAmp Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ORBCOMM||$202.00 million||4.09||$36.94 million||($0.45)||-24.98|
|CalAmp Corp.||$347.32 million||2.35||$35.99 million||$0.12||191.43|
ORBCOMM has higher revenue, but lower earnings than CalAmp Corp.. ORBCOMM is trading at a lower price-to-earnings ratio than CalAmp Corp., indicating that it is currently the more affordable of the two stocks.
This table compares ORBCOMM and CalAmp Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ORBCOMM beats CalAmp Corp. on 7 of the 13 factors compared between the two stocks.
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.
CalAmp Corp. Company Profile
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.
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