Deutsche Telekom (OTCMKTS:DTEGY – Get Free Report) and Globalstar (NASDAQ:GSAT – Get Free Report) are both large-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Analyst Ratings
This is a summary of current ratings and recommmendations for Deutsche Telekom and Globalstar, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deutsche Telekom | 0 | 4 | 2 | 0 | 2.33 |
| Globalstar | 1 | 4 | 1 | 0 | 2.00 |
Globalstar has a consensus price target of $75.67, indicating a potential downside of 9.27%. Given Globalstar’s higher probable upside, analysts clearly believe Globalstar is more favorable than Deutsche Telekom.
Insider and Institutional Ownership
18.9% of Globalstar shares are held by institutional investors. 60.0% of Globalstar shares are held 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.
Profitability
This table compares Deutsche Telekom and Globalstar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deutsche Telekom | 7.18% | 11.20% | 3.51% |
| Globalstar | -22.25% | -16.66% | -2.43% |
Risk & Volatility
Deutsche Telekom has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Globalstar has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Valuation & Earnings
This table compares Deutsche Telekom and Globalstar”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deutsche Telekom | $134.70 billion | 1.02 | $10.87 billion | $2.07 | 13.94 |
| Globalstar | $272.99 million | 39.58 | -$8.65 million | ($0.51) | -163.53 |
Deutsche Telekom has higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.
Summary
Deutsche Telekom beats Globalstar on 8 of the 13 factors compared between the two stocks.
About Deutsche Telekom
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.
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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