RR Media (RRM) vs. ORBCOMM (ORBC) Critical Contrast

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

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RR Media and ORBCOMM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RR Media 0 0 0 0 N/A
ORBCOMM 0 0 6 0 3.00

ORBCOMM has a consensus price target of $13.75, indicating a potential upside of 20.72%.

Profitability

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

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RR Media N/A N/A N/A $0.46 N/A
ORBCOMM $186.74 million 4.53 -$23.51 million ($0.79) -14.42

RR Media has higher earnings, but lower revenue 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.

Dividends

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

About RR Media

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.

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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