Head to Head Analysis: America Movil SAB de CV (AMOV) & ORBCOMM (ORBC)

America Movil SAB de CV (NYSE: AMOV) and ORBCOMM (NASDAQ:ORBC) are both telecommunications services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

77.8% of ORBCOMM shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares America Movil SAB de CV and ORBCOMM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America Movil SAB de CV -3.37% -21.11% -2.41%
ORBCOMM -25.32% -8.01% -3.94%

Valuation & Earnings

This table compares America Movil SAB de CV and ORBCOMM’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America Movil SAB de CV N/A N/A N/A $0.56 30.38
ORBCOMM $186.74 million 4.29 -$23.51 million ($0.79) -13.65

America Movil SAB de CV has higher earnings, but lower revenue than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than America Movil SAB de CV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for America Movil SAB de CV and ORBCOMM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America Movil SAB de CV 0 1 0 0 2.00
ORBCOMM 0 0 5 0 3.00

ORBCOMM has a consensus price target of $13.30, suggesting a potential upside of 23.38%. Given ORBCOMM’s stronger consensus rating and higher possible upside, analysts clearly believe ORBCOMM is more favorable than America Movil SAB de CV.

Volatility & Risk

America Movil SAB de CV has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, ORBCOMM has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Summary

ORBCOMM beats America Movil SAB de CV on 8 of the 12 factors compared between the two stocks.

America Movil SAB de CV Company Profile

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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.

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