Meru Networks (NASDAQ: MERU) and ORBCOMM (NASDAQ:ORBC) are both telecommunications services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Meru Networks and ORBCOMM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Meru Networks | 0 | 0 | 0 | 0 | N/A |
| ORBCOMM | 0 | 0 | 5 | 0 | 3.00 |
ORBCOMM has a consensus price target of $12.88, suggesting a potential upside of 15.99%. Given ORBCOMM’s higher probable upside, analysts clearly believe ORBCOMM is more favorable than Meru Networks.
Earnings & Valuation
This table compares Meru Networks and ORBCOMM’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Meru Networks | N/A | N/A | N/A | N/A | N/A |
| ORBCOMM | $202.00 million | 4.04 | $36.94 million | ($0.45) | -24.67 |
ORBCOMM has higher revenue and earnings than Meru Networks.
Profitability
This table compares Meru Networks and ORBCOMM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Meru Networks | -46.15% | N/A | -86.56% |
| ORBCOMM | -15.52% | -6.16% | -3.25% |
Institutional & Insider Ownership
79.8% of ORBCOMM shares are held by institutional investors. 9.5% of ORBCOMM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
ORBCOMM beats Meru Networks on 7 of the 8 factors compared between the two stocks.
About Meru Networks
Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.
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.
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