Analyzing ORBCOMM (ORBC) and Telecom Italia (TI.A)

ORBCOMM (NASDAQ:ORBC) and Telecom Italia (NYSE:TI.A) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Dividends

Telecom Italia pays an annual dividend of $0.24 per share and has a dividend yield of 4.4%. ORBCOMM does not pay a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ORBCOMM and Telecom Italia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 2 3 0 2.60
Telecom Italia 0 0 0 0 N/A

ORBCOMM currently has a consensus target price of $9.25, indicating a potential upside of 26.19%. Given ORBCOMM’s higher possible upside, equities analysts plainly believe ORBCOMM is more favorable than Telecom Italia.

Risk and Volatility

ORBCOMM has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Institutional and Insider Ownership

85.9% of ORBCOMM shares are owned by institutional investors. 7.3% of ORBCOMM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ORBCOMM and Telecom Italia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -9.51% -10.08% -4.33%
Telecom Italia N/A N/A N/A

Earnings & Valuation

This table compares ORBCOMM and Telecom Italia’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ORBCOMM $276.14 million 2.11 -$26.24 million ($0.33) -22.21
Telecom Italia $22.77 billion N/A -$1.67 billion N/A N/A

ORBCOMM has higher earnings, but lower revenue than Telecom Italia.

Summary

ORBCOMM beats Telecom Italia on 6 of the 11 factors compared between the two stocks.

About ORBCOMM

ORBCOMM Inc. provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. The company offers network connectivity, devices, device management, and Web reporting applications that are designed to track, monitor, control, and enhance security for various assets, such as trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators, oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters in transportation and supply chain, heavy equipment, fixed asset monitoring, and maritime industries, as well as for governments. It also provides satellite automatic identification service data services for vessel navigation and to enhance maritime safety for government and commercial customers; and vehicle fleet management, as well as in-cab and fleet vehicle solutions using various network platforms, including its own constellation of low-Earth orbit satellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services through reseller agreements with various cellular wireless providers. In addition, the company offers customer solutions utilizing additional satellite network service options through service agreements with third party mobile satellite providers; and resells service using the two-way Inmarsat satellite network to provide higher bandwidth. It markets and sells its products and services directly to original equipment manufacturers, government customers, and end-users, as well as indirectly through market channel partners and affiliates. The company has a strategic alliance with Inmarsat plc. ORBCOMM Inc. was founded in 2001 and is headquartered in Rochelle Park, New Jersey.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, the Mediterranean Basin, and South America. It offers landline and mobile telecommunications, voice, messaging, data, Internet, and broadband services for consumers, as well as for small and medium-size enterprises, small offices/home offices, public sector clients, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also provides regulated and unregulated wholesale services for fixed and mobile telecommunications operators; infrastructure for housing radio transmission equipment of mobile telephone networks; and office products and services for information technology (IT), as well as develops, engineers, builds, and operates network infrastructures, IT, real estate properties, and plant engineering. In addition, it offers Ethernet, optical connectivity, and Internet protocol solutions; dedicated transport services; platform services to distribute multimedia content; wireless and satellite services through a radio channel; and IT products and solutions for business customers. Telecom Italia S.p.A. was founded in 1908 and is based in Milan, Italy.

Receive News & Ratings for ORBCOMM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ORBCOMM and related companies with MarketBeat.com's FREE daily email newsletter.