Contrasting Global Eagle Entertainment (OTCMKTS:GEENQ) and Globalstar (OTCMKTS:GSAT)

Global Eagle Entertainment (OTCMKTS:GEENQ) and Globalstar (NYSE:GSAT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

Global Eagle Entertainment has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Globalstar has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares Global Eagle Entertainment and Globalstar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Eagle Entertainment -38.63% N/A -33.93%
Globalstar -59.84% -20.28% -9.43%

Institutional & Insider Ownership

17.8% of Globalstar shares are held by institutional investors. 12.1% of Global Eagle Entertainment shares are held by company insiders. Comparatively, 58.1% of Globalstar 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.

Valuation and Earnings

This table compares Global Eagle Entertainment and Globalstar’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Eagle Entertainment $656.88 million 0.01 -$153.44 million ($41.50) -0.02
Globalstar $131.72 million 4.02 $15.32 million ($0.16) -1.98

Globalstar has lower revenue, but higher earnings than Global Eagle Entertainment. Globalstar is trading at a lower price-to-earnings ratio than Global Eagle Entertainment, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Global Eagle Entertainment and Globalstar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Eagle Entertainment 0 0 0 0 N/A
Globalstar 0 0 0 0 N/A

Summary

Globalstar beats Global Eagle Entertainment on 6 of the 11 factors compared between the two stocks.

Global Eagle Entertainment Company Profile

Global Eagle Entertainment Inc. provides media and satellite-based connectivity solutions worldwide. The company operates in two segments, Media & Content and Connectivity. The Media & Content buys, produces, manages, distributes, and provides wholly-owned and licensed media content, video and music programming, advertising, applications, and video games, as well as post-production services for and to the airline, maritime, and other away-from-home non-theatrical markets. This segment also offers value-added services, such as selection, purchase, production, customer support, software development, creative services, and technical editing and curating of media content in connection with the integration and servicing of entertainment programs, as well as sourcing of advertising from agencies and directly from brands. The Connectivity segment provides satellite-based connectivity services to enterprise and government customers in the aviation, maritime, and land markets. This segment offers satellite-based Internet access, streaming and broadcast live television, on-demand content, and texting services, as well as games, e-commerce, travel-related information, and backhaul solutions. It also sells and leases equipment that enables satellite-based services to operate on aircraft; and connectivity-enabled solutions for advertising, operational performance management, and analytics. The company was founded in 2004 and is headquartered in Los Angeles, California. On July 22, 2020, Global Eagle Entertainment Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

Globalstar Company Profile

Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and satellite data modem services comprising asynchronous and packet data services. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and its sales force and e-commerce Website. As of December 31, 2019, it had approximately 775,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. was founded in 2003 and is headquartered in Covington, Louisiana.

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