Financial Review: Globalstar (NYSE:GSAT) & Calix (NYSE:CALX)

Globalstar (NYSE:GSAT) and Calix (NYSE:CALX) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings for Globalstar and Calix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalstar	0	0	0	0	0.00
Calix	0	2	4	0	2.67

Calix has a consensus target price of $42.50, suggesting a potential upside of 18.91%. Given Calix’s stronger consensus rating and higher possible upside, analysts clearly believe Calix is more favorable than Globalstar.

Valuation and Earnings

This table compares Globalstar and Calix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globalstar	$241.58 million	17.25	-$24.72 million	($0.03)	-73.33
Calix	$890.13 million	2.66	$29.33 million	($0.24)	-148.92

Calix has higher revenue and earnings than Globalstar. Calix is trading at a lower price-to-earnings ratio than Globalstar, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

18.9% of Globalstar shares are held by institutional investors. Comparatively, 98.1% of Calix shares are held by institutional investors. 61.0% of Globalstar shares are held by company insiders. Comparatively, 16.7% of Calix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Globalstar and Calix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Globalstar	-14.91%	-9.40%	-3.91%
Calix	-1.79%	1.33%	1.07%

Volatility & Risk

Globalstar has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Calix has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Summary

Calix beats Globalstar on 10 of the 14 factors compared between the two stocks.

About Globalstar

GLOBALSTAR INC offers satellite voice and data services to commercial and recreational users in more than 120 countries around the world. Globalstar’s products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.