ORBCOMM (NASDAQ: ORBC) and pdvWireless (NASDAQ:PDVW) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Risk and Volatility
ORBCOMM has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, pdvWireless has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for ORBCOMM and pdvWireless, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ORBCOMM | 0 | 0 | 5 | 0 | 3.00 |
| pdvWireless | 0 | 0 | 2 | 0 | 3.00 |
ORBCOMM currently has a consensus target price of $12.88, indicating a potential upside of 16.73%. pdvWireless has a consensus target price of $51.00, indicating a potential upside of 82.80%. Given pdvWireless’ higher possible upside, analysts clearly believe pdvWireless is more favorable than ORBCOMM.
Earnings & Valuation
This table compares ORBCOMM and pdvWireless’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| ORBCOMM | $202.00 million | 3.91 | $36.94 million | ($0.45) | -24.51 |
| pdvWireless | $4.79 million | 83.86 | -$30.54 million | ($2.57) | -10.86 |
ORBCOMM has higher revenue and earnings than pdvWireless. ORBCOMM is trading at a lower price-to-earnings ratio than pdvWireless, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ORBCOMM and pdvWireless’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ORBCOMM | -15.52% | -6.16% | -3.25% |
| pdvWireless | -711.56% | -15.52% | -14.61% |
Insider and Institutional Ownership
80.4% of ORBCOMM shares are owned by institutional investors. Comparatively, 93.5% of pdvWireless shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by company insiders. Comparatively, 10.9% of pdvWireless shares are owned 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
ORBCOMM beats pdvWireless on 8 of the 12 factors compared between the two stocks.
About ORBCOMM
ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.
About pdvWireless
pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.
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