pdvWireless (NASDAQ: PDVW) and ORBCOMM (NASDAQ:ORBC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitabiliy, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares pdvWireless and ORBCOMM’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
pdvWireless $4.79 million 86.57 -$30.54 million ($2.72) -10.59
ORBCOMM $195.11 million 4.13 $37.30 million ($0.45) -25.00

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 pdvWireless and ORBCOMM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
pdvWireless -818.59% -16.18% -15.36%
ORBCOMM -15.52% -6.16% -3.25%

Insider & Institutional Ownership

93.5% of pdvWireless shares are owned by institutional investors. Comparatively, 80.4% of ORBCOMM shares are owned by institutional investors. 10.9% of pdvWireless shares are owned by company insiders. Comparatively, 9.5% of ORBCOMM shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

pdvWireless has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, ORBCOMM has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for pdvWireless and ORBCOMM, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
pdvWireless 0 0 2 0 3.00
ORBCOMM 0 0 5 0 3.00

pdvWireless presently has a consensus price target of $51.00, suggesting a potential upside of 77.08%. ORBCOMM has a consensus price target of $12.88, suggesting a potential upside of 14.44%. Given pdvWireless’ higher probable upside, research analysts clearly believe pdvWireless is more favorable than ORBCOMM.

Summary

ORBCOMM beats pdvWireless on 8 of the 12 factors compared between the two stocks.

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.

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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