Comparing ORBCOMM (ORBC) and RR Media (RRM)

ORBCOMM (NASDAQ: ORBC) and RR Media (NASDAQ:RRM) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares ORBCOMM and RR Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -25.32% -8.01% -3.94%
RR Media 3.49% 5.83% 3.07%

Dividends

RR Media pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. ORBCOMM does not pay a dividend. RR Media pays out 60.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares ORBCOMM and RR Media’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ORBCOMM $186.74 million 4.59 -$23.51 million ($0.79) -14.61
RR Media N/A N/A N/A $0.46 28.37

RR Media has lower revenue, but higher earnings than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than RR Media, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ORBCOMM and RR Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 5 0 3.00
RR Media 0 0 0 0 N/A

ORBCOMM currently has a consensus price target of $13.70, indicating a potential upside of 18.72%. Given ORBCOMM’s higher possible upside, equities analysts clearly believe ORBCOMM is more favorable than RR Media.

Insider and Institutional Ownership

78.1% of ORBCOMM shares are held by institutional investors. 9.5% of ORBCOMM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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.

RR Media Company Profile

MX1 Ltd, formerly RR Media Ltd, is an Israel-based global media services provider. It is a media globalize company that works with media businesses to transform content into a viewer experience for a global audience. MX1 Ltd offers a range of content management, delivery and digital media services. It distributes more than 1000 television (TV) channels, manages the play out of more than 400 channels and delivers syndicated content to more than 120 subscription Video on Demand (VOD) platforms. The Company has offices worldwide and operates global media centers, enabling customers to reach people around the world. MX1 Ltd is a wholly-owned subsidiary of SES, Euronext Paris and Luxembourg Stock Exchange: SESG.

Receive News & Ratings for ORBCOMM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ORBCOMM and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply