Telefonica Brasil (NYSE:VIV – Get Free Report) and Globalstar (NASDAQ:GSAT – Get Free Report) are both large-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares Telefonica Brasil and Globalstar”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telefonica Brasil | $61.77 billion | 0.31 | $1.10 billion | $0.78 | 15.22 |
| Globalstar | $280.64 million | 37.85 | -$8.65 million | ($0.51) | -160.76 |
Profitability
This table compares Telefonica Brasil and Globalstar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telefonica Brasil | 10.64% | 9.72% | 5.18% |
| Globalstar | -22.25% | -16.66% | -2.43% |
Institutional and Insider Ownership
5.2% of Telefonica Brasil shares are owned by institutional investors. Comparatively, 18.9% of Globalstar shares are owned by institutional investors. 60.0% of Globalstar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Telefonica Brasil has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Globalstar has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Telefonica Brasil and Globalstar, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telefonica Brasil | 3 | 5 | 1 | 0 | 1.78 |
| Globalstar | 1 | 4 | 1 | 0 | 2.00 |
Telefonica Brasil presently has a consensus target price of $14.66, suggesting a potential upside of 23.45%. Globalstar has a consensus target price of $75.67, suggesting a potential downside of 7.71%. Given Telefonica Brasil’s higher possible upside, analysts clearly believe Telefonica Brasil is more favorable than Globalstar.
Summary
Telefonica Brasil beats Globalstar on 8 of the 13 factors compared between the two stocks.
About Telefonica Brasil
Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.
About Globalstar
Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM’s capacity-multiplying technology with Globalstar’s Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.
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