Globalstar (NYSEAMERICAN:GSAT) and Boingo Wireless (NASDAQ:WIFI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Risk and Volatility
Globalstar has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Boingo Wireless has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Globalstar and Boingo Wireless, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Globalstar | 1 | 0 | 0 | 0 | 1.00 |
Boingo Wireless | 0 | 4 | 4 | 0 | 2.50 |
Globalstar presently has a consensus price target of $0.55, suggesting a potential downside of 58.65%. Boingo Wireless has a consensus price target of $17.00, suggesting a potential upside of 21.34%. Given Boingo Wireless' stronger consensus rating and higher possible upside, analysts clearly believe Boingo Wireless is more favorable than Globalstar.
Profitability
This table compares Globalstar and Boingo Wireless' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Globalstar | -98.82% | -27.62% | -13.44% |
Boingo Wireless | -6.40% | -17.43% | -2.43% |
Valuation and Earnings
This table compares Globalstar and Boingo Wireless' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Globalstar | $131.72 million | 16.98 | $15.32 million | ($0.16) | -8.31 |
Boingo Wireless | $263.79 million | 2.37 | $-10,300,000.00 | ($0.23) | -60.91 |
Globalstar has higher earnings, but lower revenue than Boingo Wireless. Boingo Wireless is trading at a lower price-to-earnings ratio than Globalstar, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
17.0% of Globalstar shares are held by institutional investors. Comparatively, 89.2% of Boingo Wireless shares are held by institutional investors. 58.1% of Globalstar shares are held by company insiders. Comparatively, 4.3% of Boingo Wireless shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Boingo Wireless beats Globalstar on 9 of the 14 factors compared between the two stocks.