Financial Contrast: Novume Solutions (NVMM) & Iridium Communications (IRDM)

Novume Solutions (NASDAQ:NVMM) and Iridium Communications (NASDAQ:IRDM) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares Novume Solutions and Iridium Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novume Solutions $22.13 million 0.38 -$5.04 million N/A N/A
Iridium Communications $448.05 million 5.38 $233.85 million $0.70 30.96

Iridium Communications has higher revenue and earnings than Novume Solutions.

Profitability

This table compares Novume Solutions and Iridium Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novume Solutions -14.30% -276.82% -35.27%
Iridium Communications 26.88% 1.01% 0.40%

Institutional and Insider Ownership

2.7% of Novume Solutions shares are owned by institutional investors. Comparatively, 86.1% of Iridium Communications shares are owned by institutional investors. 66.5% of Novume Solutions shares are owned by insiders. Comparatively, 5.6% of Iridium Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Novume Solutions and Iridium Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novume Solutions 0 0 1 0 3.00
Iridium Communications 1 1 2 1 2.60

Novume Solutions currently has a consensus price target of $4.75, indicating a potential upside of 718.97%. Iridium Communications has a consensus price target of $21.44, indicating a potential downside of 1.07%. Given Novume Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Novume Solutions is more favorable than Iridium Communications.

Summary

Iridium Communications beats Novume Solutions on 9 of the 12 factors compared between the two stocks.

About Novume Solutions

Novume Solutions, Inc., through its subsidiaries, provides consulting and technical support services to government contracting market in the United States. It offers market intelligence and opportunity identification, capture and strategic advisory, proposal strategy and development, teaming support, and managed human capital services to assist government contractors. The company also provides risk mitigation and crisis management services comprising predictive intelligence, business continuity, risk assessment, crisis management and communications, emergency and cyber incident response, behavioral risk and threat assessment, and workplace violence prevention. In addition, it offers BERTHA, a behavioral risk and threat assessment program, to identify early warning signs that may be exhibited by an individual before they are on a path to violence. Further, the company provides specialty staffing services, which include specialized contract personnel, temp-to-hire professionals, direct hires, and temporary or seasonal hires to the Department of Defense and various group of companies in the aerospace and aviation industry. Additionally, it offers compensation assessments, program maturity effectiveness, event impact management reviews, and IT resiliency and critical supply analyses services; and automated traffic safety enforcement solutions, including speed, red light, and move-over and distracted driving camera systems, as well as citation management software and secure electronic evidence storage systems. Novume Solutions, Inc. was founded in 2017 and is headquartered in Chantilly, Virginia.

About Iridium Communications

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; submarine communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.

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