ORBCOMM (ORBC) vs. America Movil SAB de CV (AMOV) Critical Review

ORBCOMM (NASDAQ: ORBC) and America Movil SAB de CV (NYSE:AMOV) are both telecommunications services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for ORBCOMM and America Movil SAB de CV, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 6 0 3.00
America Movil SAB de CV 0 1 0 0 2.00

ORBCOMM presently has a consensus target price of $13.75, suggesting a potential upside of 20.72%. Given ORBCOMM’s stronger consensus rating and higher possible upside, research analysts clearly believe ORBCOMM is more favorable than America Movil SAB de CV.

Insider & Institutional Ownership

78.1% of ORBCOMM shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

ORBCOMM has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, America Movil SAB de CV has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares ORBCOMM and America Movil SAB de CV’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ORBCOMM $186.74 million 4.53 -$23.51 million ($0.78) -14.60
America Movil SAB de CV N/A N/A N/A $0.57 32.58

America Movil SAB de CV has lower revenue, but higher earnings than ORBCOMM. ORBCOMM is trading at a lower price-to-earnings ratio than America Movil SAB de CV, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ORBCOMM and America Movil SAB de CV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -25.32% -8.01% -3.94%
America Movil SAB de CV -3.37% -21.11% -2.41%

Summary

ORBCOMM beats America Movil SAB de CV on 8 of the 12 factors compared between the two stocks.

About ORBCOMM

ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.

About America Movil SAB de CV

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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