Critical Analysis: KVH Industries (KVHI) versus Its Competitors

KVH Industries (NASDAQ:KVHI) is one of 33 publicly-traded companies in the “Wireless Telecommunication Services” industry, but how does it weigh in compared to its competitors? We will compare KVH Industries to similar businesses based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for KVH Industries and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KVH Industries	1	0	0	0	1.00
KVH Industries Competitors	322	915	1458	140	2.50

As a group, “Wireless Telecommunication Services” companies have a potential upside of 33.99%. Given KVH Industries’ competitors stronger consensus rating and higher probable upside, analysts plainly believe KVH Industries has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

73.7% of KVH Industries shares are held by institutional investors. Comparatively, 48.6% of shares of all “Wireless Telecommunication Services” companies are held by institutional investors. 21.4% of KVH Industries shares are held by company insiders. Comparatively, 23.2% of shares of all “Wireless Telecommunication Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

KVH Industries has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, KVH Industries’ competitors have a beta of 1.99, indicating that their average share price is 99% more volatile than the S&P 500.

Profitability

This table compares KVH Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KVH Industries	0.36%	2.20%	1.88%
KVH Industries Competitors	60.51%	11.59%	4.53%

Earnings and Valuation

This table compares KVH Industries and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KVH Industries	$111.01 million	-$7.38 million	244.00
KVH Industries Competitors	$18.12 billion	$2.68 billion	19.69

KVH Industries’ competitors have higher revenue and earnings than KVH Industries. KVH Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

KVH Industries competitors beat KVH Industries on 11 of the 13 factors compared.

About KVH Industries

KVH Industries is a technology company that develops connectivity and navigation solutions for maritime, land-based, and government customers. The company is best known for satellite communications systems that provide broadband internet, voice, and data services to commercial vessels, leisure boats, and other mobile platforms. KVH’s maritime offerings have included the TracNet and TracPhone product families, which combine satellite, cellular, and onboard communications capabilities. The company has also provided network management, cybersecurity, content, and support services designed to help vessel operators maintain reliable connectivity at sea.