ORBCOMM (NASDAQ: ORBC) and Mobile TeleSystems OJSC (NYSE:MBT) are both wireless telecommunications services – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Mobile TeleSystems OJSC pays an annual dividend of $0.70 per share and has a dividend yield of 6.6%. ORBCOMM does not pay a dividend. Mobile TeleSystems OJSC pays out 70.7% of its earnings in the form of a dividend.
Insider & Institutional Ownership
76.9% of ORBCOMM shares are owned by institutional investors. Comparatively, 32.3% of Mobile TeleSystems OJSC shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by insiders. Comparatively, 1.0% of Mobile TeleSystems OJSC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current recommendations and price targets for ORBCOMM and Mobile TeleSystems OJSC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mobile TeleSystems OJSC||0||2||3||0||2.60|
ORBCOMM presently has a consensus target price of $13.30, suggesting a potential upside of 32.47%. Mobile TeleSystems OJSC has a consensus target price of $10.97, suggesting a potential upside of 3.75%. Given ORBCOMM’s stronger consensus rating and higher possible upside, equities analysts plainly believe ORBCOMM is more favorable than Mobile TeleSystems OJSC.
Volatility & Risk
ORBCOMM has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
This table compares ORBCOMM and Mobile TeleSystems OJSC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mobile TeleSystems OJSC||13.61%||42.21%||10.65%|
Valuation and Earnings
This table compares ORBCOMM and Mobile TeleSystems OJSC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ORBCOMM||$186.74 million||3.99||-$23.51 million||($0.78)||-12.87|
|Mobile TeleSystems OJSC||$5.80 billion||1.81||$727.11 million||$0.99||10.68|
Mobile TeleSystems OJSC has higher revenue and earnings than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than Mobile TeleSystems OJSC, indicating that it is currently the more affordable of the two stocks.
Mobile TeleSystems OJSC beats ORBCOMM on 8 of the 15 factors compared between the two stocks.
ORBCOMM Company Profile
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.
Mobile TeleSystems OJSC Company Profile
Mobil’nye Telesistemy PAO is a Russia-based provider of telecommunications services. The Company provides mobile and fixed-line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed-line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed-line segment includes fixed-line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed-line operations carried out across multiple regions of Ukraine. The Company also offers software solutions, such as LiteBox, a cloud-based tool for online cash operations.
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