KVH Industries (NASDAQ:KVHI – Get Free Report) and Iridium World Communications (OTCMKTS:IRIDQ – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Risk and Volatility
KVH Industries has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Iridium World Communications has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.
Profitability
This table compares KVH Industries and Iridium World Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KVH Industries | -4.68% | -0.76% | -0.65% |
| Iridium World Communications | N/A | N/A | N/A |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KVH Industries | $125.01 million | 1.18 | -$7.38 million | ($0.30) | -25.30 |
| Iridium World Communications | N/A | N/A | N/A | N/A | N/A |
Iridium World Communications has lower revenue, but higher earnings than KVH Industries.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for KVH Industries and Iridium World Communications, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KVH Industries | 1 | 0 | 0 | 0 | 1.00 |
| Iridium World Communications | 0 | 0 | 0 | 0 | 0.00 |
Given Iridium World Communications’ higher probable upside, analysts clearly believe Iridium World Communications is more favorable than KVH Industries.
Insider & Institutional Ownership
73.7% of KVH Industries shares are held by institutional investors. 21.4% of KVH Industries shares are held by company insiders. Comparatively, 4.1% of Iridium World Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
KVH Industries beats Iridium World Communications on 5 of the 9 factors compared between the two stocks.
About KVH Industries
KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.
About Iridium World Communications
In August 1999, Iridium World Communications Ltd. filed a voluntary petition under Chapter 11 of the United States Bankruptcy Court, and operated as a debtor-in-possession. Iridium World Communications, Ltd. was engaged in the ownership and participation in the management of Iridium LLC, its parent company, which owned Iridium Operating LLC (Iridium), as of March 31, 1999. Iridium operated as a global wireless telecommunications company. It enabled its customers to make and receive phone calls, and receive pages virtually anywhere in the world. The company was founded in 1991 and is based in Hamilton, Bermuda.
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