Uniti Group (NASDAQ:UNIT – Get Free Report) and Globalstar (NASDAQ:GSAT – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares Uniti Group and Globalstar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Uniti Group | 28.68% | -133.07% | -4.09% |
| Globalstar | -22.25% | -16.66% | -2.43% |
Insider & Institutional Ownership
87.5% of Uniti Group shares are held by institutional investors. Comparatively, 18.9% of Globalstar shares are held by institutional investors. 1.9% of Uniti Group shares are held by company insiders. Comparatively, 60.0% of Globalstar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Uniti Group | $2.23 billion | 1.06 | $1.30 billion | $2.71 | 3.61 |
| Globalstar | $272.99 million | 38.84 | -$8.65 million | ($0.51) | -160.45 |
Uniti Group has higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than Uniti Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Uniti Group has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Globalstar has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Uniti Group and Globalstar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Uniti Group | 0 | 7 | 1 | 1 | 2.33 |
| Globalstar | 1 | 4 | 1 | 0 | 2.00 |
Uniti Group presently has a consensus target price of $10.92, indicating a potential upside of 11.62%. Globalstar has a consensus target price of $75.67, indicating a potential downside of 7.53%. Given Uniti Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Uniti Group is more favorable than Globalstar.
Summary
Uniti Group beats Globalstar on 9 of the 14 factors compared between the two stocks.
About Uniti Group
Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.
About Globalstar
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 data modem services and equipment. 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 sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 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. has a strategic alliance with XCOM Labs to jointly commercialize XCOM’s capacity-multiplying technology with Globalstar’s Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.
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